Trade Barriers as Outcomes from Two-Stage Games: Evidence
AbstractA substantial theoretical literature on trade policy as equilibrium outcomes from cooperative and non-cooperative games has grown recently, but its implications have rarely been subjected to empirical scrutiny. It not only makes predictions about equilibrium levels of protection, but also positive observations about the choice of trade instruments. In this paper predictions from the two-stage games in Copeland (1990) and Copeland, Tower, and Webb (1989) are empirically investigated using bilateral non-tariff barrier (NTB) data between the United States and nine developed partner countries. This 'first round' of systematic empirical evidence suggests directions for further theoretical work.
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Bibliographic InfoArticle provided by Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 32 (1999)
Issue (Month): 4 (August)
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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
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Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
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- de Gorter, Harry, 2008. "Explaining Inefficient Policy Instruments," Agricultural Distortions Working Paper 48638, World Bank.
- Brian R. Copeland & M. Scott Taylor, 2004.
"Trade, Growth, and the Environment,"
Journal of Economic Literature,
American Economic Association, vol. 42(1), pages 7-71, March.
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