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Endogenous Behaviour of the Tariff Rate in a Political Economy

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  • Hom M Pant

    (University of Tasmania)

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    Abstract

    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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    Bibliographic Info

    Paper provided by EconWPA in its series International Trade with number 9609001.

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    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!
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    Web page: http://128.118.178.162

    Related research

    Keywords: endogenous-tariff; comparative statics; Nash bargaining games; CGE models; political economy;

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    References

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