Tariff Wars and Trade Deals with Costly Government
AbstractWe study a simple model of tariff wars and trade deals in which government revenue collection and disbursement uses resources. The introduction of costly governments leads to lower non–cooperative tariffs, the possibility that a less costly government may win a tariff war, and fully cooperative trade deals where countries lower tariffs but do not eliminate them, even with lump–sum taxes and transfers.
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Bibliographic InfoPaper provided by McMaster University in its series Department of Economics Working Papers with number 2000-05.
Length: 17 pages
Date of creation: May 2000
Date of revision:
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Other versions of this item:
- John Burbidge & Gordon Myers, 2004. "Tariff Wars and Trade Deals with Costly Government," Review of International Economics, Wiley Blackwell, vol. 12(3), pages 543-549, 08.
- John B. Burbridge & Gordon M. Myers, 2000. "Tariff Wars and Trade Deals With Costly Government," Discussion Papers dp00-15, Department of Economics, Simon Fraser University, revised 08 Jun 2000.
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- Grossman, G.M. & Helpman, E., 1992. "Protection for Sale," Papers 162, Princeton, Woodrow Wilson School - Public and International Affairs.
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