Incentive Compatible Trade Policies
Abstract
A two-country trade model with production uncertainty is considered. If complete contingent markets do not exist, it is desirable for governments to adopt some trade policies to share the production risk. A full-information policy involves incomes transfers across co untries, which can be achieved by equal import tariffs and export sub sidies. With incomplete information, the author considers incentive c ompatible trade policies, which are designed to be truth revealing wh ile partially sharing the production risk. In this case, the tariff i n one country may differ from the export subsidy abroad. Copyright 1987 by The editors of the Scandinavian Journal of Economics.Download Info
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Bibliographic Info
Article provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.
Volume (Year): 89 (1987)
Issue (Month): 3 ()
Pages: 373-87
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Related research
Keywords:Other versions of this item:
- Robert C. Feenstra, 1986. "Incentive Compatible Trade Policies," NBER Working Papers 1977, National Bureau of Economic Research, Inc.
References
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- Jonathan Eaton & Gene M. Grossman, 1985.
"Tariffs as Insurance: Optimal Commercial Policy When Domestic Markets Are Incomplete,"
NBER Working Papers
0797, National Bureau of Economic Research, Inc.
- Jonathan Eaton & Gene M. Grossman, 1985. "Tariffs as Insurance: Optimal Commercial Policy When Domestic Markets Are Incomplete," Canadian Journal of Economics, Canadian Economics Association, vol. 18(2), pages 258-72, May.
- Azariadis, Costas & Stiglitz, Joseph E, 1983. "Implicit Contracts and Fixed Price Equilibria," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 1-22, Supplemen.
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- Newbery, David M G & Stiglitz, Joseph E, 1982. "The Choice of Techniques and the Optimality of Market Equilibrium with Rational Expectations," Journal of Political Economy, University of Chicago Press, vol. 90(2), pages 223-46, April.
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- Sherwin Rosen, 1985.
"Implicit Contracts: A Survey,"
NBER Working Papers
1635, National Bureau of Economic Research, Inc.
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Bourguignon, Francois & Verdier, Thierry, 2000.
"Is financial openness bad for education? A political economy perspective on development,"
European Economic Review,
Elsevier, vol. 44(4-6), pages 891-903, May.
- Bourguignon, F. & Verdier, T., 1999. "Is Financial Openness bad for Education? A Political Economy Perspective on Development," DELTA Working Papers 1999-20, DELTA (Ecole normale supérieure).
- Christophe Gouel & Sébastien Jean, 2012.
"Optimal Food Price Stabilization in a Small Open Developing Country,"
Working Papers
2012-01, CEPII research center.
- Gouel, Christophe & Jean, Sebastien, 2012. "Optimal food price stabilization in a small open developing country," Policy Research Working Paper Series 5943, The World Bank.
- J. David Richardson, 1987. "International Coordination of Trade Policy," NBER Working Papers 2293, National Bureau of Economic Research, Inc.
- Gaisford, James D. & Kerr, William A., 1992. "Which Country Loses The Least In A Trade War?," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 36(03), December.
- Stahl, Dale O. & Turunen-Red, Arja H., 1995. "Tariff games: Cooperation with random variation in political regimes," European Journal of Political Economy, Elsevier, vol. 11(2), pages 215-238, June.
- Richard A. Jensen & Marie Thursby, 1990.
"Tariffs with Private Information and Reputation,"
NBER Working Papers
2959, National Bureau of Economic Research, Inc.
- Jensen, Richard & Thursby, Marie, 1990. "Tariffs with private information and reputation," Journal of International Economics, Elsevier, vol. 29(1-2), pages 43-67, August.
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