Terms of Trade Shocks and Domestic Prices Under Tariffs and Quotas: a Note
The paper develops a two-good, small country, general equilibrium trade model with endogenous labour supply, where trade is restricted by a tariff or an import quota. Within this framework, it is shown that, contrary to Anam (1989), under an import quota domestic and world prices may vary in the same direction.
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|Date of creation:||2000|
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