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The Economics of Country-Specific Tariffs

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  • Gardner, Grant W
  • Kimbrough, Kent P

Abstract

A three-country model of the world economy is used to show that, when effective, a country-specific tariff will have an impact on the world economy that is equivalent to the imposition of a uniform tariff plus a subsidy to the production of home importables in the favored country financed by a transfer from the home country. Lerner's symmetry theorem and the optimum tariff problem are discussed. Copyright 1990 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Suggested Citation

  • Gardner, Grant W & Kimbrough, Kent P, 1990. "The Economics of Country-Specific Tariffs," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(3), pages 575-588, August.
  • Handle: RePEc:ier:iecrev:v:31:y:1990:i:3:p:575-88
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    Cited by:

    1. Adjemian, Michael K. & Smith, Aaron & He, Wendi, 2021. "Estimating the market effect of a trade war: The case of soybean tariffs," Food Policy, Elsevier, vol. 105(C).
    2. Jakob B. Madsen, 2001. "Trade Barriers and the Collapse of World Trade During the Great Depression," Southern Economic Journal, John Wiley & Sons, vol. 67(4), pages 848-868, April.
    3. Edward E. Leamer, 1994. "American Regionalism and Global Free Trade," NBER Working Papers 4753, National Bureau of Economic Research, Inc.

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