How would the tariff rate in a political economy respond to changes in exogenous environment? To answer this question a bargain-theoretic approach is adopted and a tariff-endogenous general equilibrium model of a small open political economy is derived. A comparative static analysis of the model shows that the bargained tariff rate changes to compensate, at least in part, for the relative loss of the loser arising from changes in the exogenous environment - be it the domestic factor endowment or the international terms of trade
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Paper provided by EconWPA in its series International Trade with number
9609001.
Length: 29 pages Date of creation: 30 Sep 1996 Date of revision:
01 Oct 1996 Handle: RePEc:wpa:wuwpit:9609001
Note: Type of Document - Word 7.0; prepared on IBM PC ; to print on HP LaserJet4; pages: 29 ; figures: included. Comments welcome! Contact details of provider: Web page: http://129.3.20.41
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Find related papers by JEL classification: C6 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
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[Downloadable!]
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[Downloadable!] (restricted)
Grossman, Gene M & Helpman, Elhanan, 1994.
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American Economic Review,
American Economic Association, vol. 84(4), pages 833-50, September.
[Downloadable!] (restricted)
Other versions:
Gene M. Grossman & Elhanan Helpman, 1992.
"Protection For Sale,"
NBER Working Papers
4149, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)