Endogenous Behaviour of the Tariff Rate in a Political Economy
AbstractHow 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
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper 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
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://188.8.131.52
endogenous-tariff; comparative statics; Nash bargaining games; CGE models; political economy;
Find related papers by JEL classification:
- C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Carlsson, Hans, 1991. "A Bargaining Model Where Parties Make Errors," Econometrica, Econometric Society, vol. 59(5), pages 1487-96, September.
- Wellisz, Stanislaw & Wilson, John D., 1986. "Lobbying and tariff formation: A deadweight loss consideration," Journal of International Economics, Elsevier, vol. 20(3-4), pages 367-375, May.
- Harsanyi, John C, 1995.
"Games with Incomplete Information,"
American Economic Review,
American Economic Association, vol. 85(3), pages 291-303, June.
- H. Keith Hall & Douglas Nelson, 1992. "Institutional Structure In The Political Economy Of Protection: Legislated V. Administered Protection," Economics and Politics, Wiley Blackwell, vol. 4(1), pages 61-77, 03.
- Bruce Gardner, 1981. "Efficient Redistribution in Agricultural Commodity Markets," University of Chicago - George G. Stigler Center for Study of Economy and State 20, Chicago - Center for Study of Economy and State.
- Grossman, G.M. & Helpman, E., 1992.
"Protection for Sale,"
162, Princeton, Woodrow Wilson School - Public and International Affairs.
- Gene M. Grossman & Elhanan Helpman, 1992. "Protection For Sale," NBER Working Papers 4149, National Bureau of Economic Research, Inc.
- Grossman, G.M. & Helpman, E., 1992. "Protection for Sale," Papers 21-92, Tel Aviv.
- Grossman, Gene & Helpman, Elhanan, 1993. "Protection for Sale," CEPR Discussion Papers 827, C.E.P.R. Discussion Papers.
- Alvin E Roth, 2008. "Axiomatic Models of Bargaining," Levine's Working Paper Archive 122247000000002376, David K. Levine.
- Chun, Y. & Thomson, W., 1988.
"Nash Solution And Uncertain Disagreement Points,"
RCER Working Papers
134, University of Rochester - Center for Economic Research (RCER).
- Svejnar, J., 1984.
"Bargaining power, fear of disagreement and wage settlements: theory and evidence from U.S. industry,"
CORE Discussion Papers
1984037, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Svejnar, Jan, 1986. "Bargaining Power, Fear of Disagreement, and Wage Settlements: Theory and Evidence from U.S. Industry," Econometrica, Econometric Society, vol. 54(5), pages 1055-78, September.
- Sen, Amartya K, 1979. "Personal Utilities and Public Judgements: Or What's Wrong with Welfare Economics?," Economic Journal, Royal Economic Society, vol. 89(355), pages 537-58, September.
- John C. Harsanyi & Reinhard Selten, 1972. "A Generalized Nash Solution for Two-Person Bargaining Games with Incomplete Information," Management Science, INFORMS, vol. 18(5-Part-2), pages 80-106, January.
- George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
- Baldwin, Richard, 1987. "Politically realistic objective functions and trade policy PROFs and tariffs," Economics Letters, Elsevier, vol. 24(3), pages 287-290.
- Fudenberg, Drew & Maskin, Eric, 1986. "The Folk Theorem in Repeated Games with Discounting or with Incomplete Information," Econometrica, Econometric Society, vol. 54(3), pages 533-54, May.
- Hillman, Arye L, 1982. "Declining Industries and Political-Support Protectionist Motives," American Economic Review, American Economic Association, vol. 72(5), pages 1180-87, December.
- Roth, Alvin E., 1977. "Independence of irrelevant alternatives, and solutions to Nash's bargaining problem," Journal of Economic Theory, Elsevier, vol. 16(2), pages 247-251, December.
- Chun, Youngsub, 1988. "Nash solution and timing of bargaining," Economics Letters, Elsevier, vol. 28(1), pages 27-31.
- Findlay, Ronald & Wellisz, Stanislaw, 1983. "Some Aspects of the Political Economy of Trade Restrictions," Kyklos, Wiley Blackwell, vol. 36(3), pages 469-81.
- Coggins, Jay S & Graham-Tomasi, Theodore & Roe, Terry L, 1991. "Existence of Equilibrium in a Lobbying Economy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(3), pages 533-50, August.
- Ng, Yew-Kwang, 1981. "Bentham or Nash? On the Acceptable Form of Social Welfare Functions," The Economic Record, The Economic Society of Australia, vol. 57(158), pages 238-50, September.
- Robert C. Feenstra & Jagdish N. Bhagwati, 1982. "Tariff Seeking and the Efficient Tariff," NBER Chapters, in: Import Competition and Response, pages 245-262 National Bureau of Economic Research, Inc.
- Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
- Aumann, Robert J & Kurz, Mordecai, 1977. "Power and Taxes," Econometrica, Econometric Society, vol. 45(5), pages 1137-61, July.
- Nash, John, 1953. "Two-Person Cooperative Games," Econometrica, Econometric Society, vol. 21(1), pages 128-140, April.
- Ken Binmore & Ariel Rubinstein & Asher Wolinsky, 1986. "The Nash Bargaining Solution in Economic Modelling," RAND Journal of Economics, The RAND Corporation, vol. 17(2), pages 176-188, Summer.
- Van Long, Ngo & Vousden, Neil, 1991. "Protectionist responses and declining industries," Journal of International Economics, Elsevier, vol. 30(1-2), pages 87-103, February.
- Thomson, William, 1981. "A class of solutions to bargaining problems," Journal of Economic Theory, Elsevier, vol. 25(3), pages 431-441, December.
- Neary, J Peter, 1978. "Short-Run Capital Specificity and the Pure Theory of International Trade," Economic Journal, Royal Economic Society, vol. 88(351), pages 488-510, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.