The Optimal Tariff, Production Lags, and Time Consistency
AbstractThe optimal tariff for a large country equals the reciprocal of the foreign export elasticity of supply. However, if prod uction decisions occur before consumption decisions, the ex ante opti mal tariff is not time consistent because the ex post elasticity is l ess than the ex ante elasticity. The author shows all countries are w orse off if the large country cannot precommit to its ex ante optimal tariff, and that all countries can gain if the large country taxes d omestic production of importables. Copyright 1988 by American Economic Association.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Review.
Volume (Year): 78 (1988)
Issue (Month): 3 (June)
Other versions of this item:
- Lapan, Harvey E., 1988. "The Optimal Tariff, Production Lags and Time Consistency," Staff General Research Papers 10816, Iowa State University, Department of Economics.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Richard Chisik & Ronald B. Davies, 2010.
"Gradualism in Tax Treaties with Irreversible Foreign Direct Investment,"
019, Ryerson University, Department of Economics.
- Richard Chisik & Ronald B. Davies, 2004. "Gradualism In Tax Treaties With Irreversible Foreign Direct Investment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(1), pages 113-139, 02.
- Richard Chisik & Ronald B. Davies, 2000. "Gradualism in Tax Treaties with Irreversible Foreign Direct Investment," University of Oregon Economics Department Working Papers 2000-3, University of Oregon Economics Department, revised 01 Jun 2002.
- Peter Welzel, 1992. "A note on the time inconsistency of strategic trade policy," Open Economies Review, Springer, vol. 3(2), pages 203-214, June.
- Richard Chisik, 2010.
"Trade Disputes, Quality Choice, and Economic Integration,"
022, Ryerson University, Department of Economics.
- Chisik, Richard, 2012. "Trade disputes, quality choice, and economic integration," Journal of International Economics, Elsevier, vol. 88(1), pages 47-61.
- K.C. Fung & Robert W. Staiger, 1994.
"Trade Liberalization and Trade Adjustment Assistance,"
- K.C. Fung & Robert W. Staiger, 1994. "Trade Liberalization and Trade Adjustment Assistance," NBER Working Papers 4847, National Bureau of Economic Research, Inc.
- Richard Chisik, 2010.
"Gradualism in Free Trade Agreements: A Theoretical Justification,"
018, Ryerson University, Department of Economics.
- Chisik, Richard, 2003. "Gradualism in free trade agreements: a theoretical justification," Journal of International Economics, Elsevier, vol. 59(2), pages 367-397, March.
- Mohammad Amin, 2004. "Time Inconsistency of Trade Policy and Multilateralism," International Trade 0402002, EconWPA.
- Tsuyoshi Toshimitsu, 2012. "Free Trade, Time-Consistent Tariff, and Market Size: The Role of GATT/WTO as Commitment Devices," Discussion Paper Series 79, School of Economics, Kwansei Gakuin University, revised Jan 2012.
- Al-Saadon, Yousef & Das, Satya P., 1996. "Host-country policy, transfer pricing and ownership distribution in international joint ventures: A theoretical analysis," International Journal of Industrial Organization, Elsevier, vol. 14(3), pages 345-364, May.
- Gervais, Jean-Philippe & Lapan, Harvey E., 2002.
"Time Consistent Export Quotas in an Oligopolistic World Market,"
Staff General Research Papers
5186, Iowa State University, Department of Economics.
- Gervais, Jean-Philippe & Lapan, Harvey E., 2002. "Time consistent export quotas in an oligopolistic world market," Journal of International Economics, Elsevier, vol. 56(2), pages 445-463, March.
- Kyle Bagwell & Robert W. Staiger, 2002.
0102-39, Columbia University, Department of Economics.
- Richard Chisik, 2010. "Limited Incremental Linking and Unlinked Trade Agreements," Working Papers 023, Ryerson University, Department of Economics.
- William Milberg, 1999. "The Rhetoric of Policy Relevance in International Economics," Macroeconomics 9904009, EconWPA.
- Rotemberg, Julio J. & Saloner, Garth, 2000.
"Competition and human capital accumulation: a theory of interregional specialization and trade,"
Regional Science and Urban Economics,
Elsevier, vol. 30(4), pages 373-404, July.
- Julio J. Rotemberg & Garth Saloner, 1990. "Competition and Human Capital Accumulation: A Theory of Interregional Specialization and Trade," NBER Working Papers 3228, National Bureau of Economic Research, Inc.
- Jean-Philippe Gervais, 2001. "Production uncertainty and trade policy commitment," Journal of International Trade & Economic Development, Taylor and Francis Journals, vol. 10(1), pages 1-21.
- Lapan, Harvey E. & Melkonian, Tigran A., 2002. "Trade Policy Under Asymmetric Information," Staff General Research Papers 10026, Iowa State University, Department of Economics.
- Dinlersoz, Emin & Dogan, Can, 2010. "Tariffs versus anti-dumping duties," International Review of Economics & Finance, Elsevier, vol. 19(3), pages 436-451, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jane Voros) or (Michael P. Albert).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.