This paper examines the effects of tariffs on price-setting duopolists selling a homogeneous product. The producers cannot segment geographically distinct mar­ kets. It provides a complete characterization of the equilibrium (mixed) strategies and analyzes the pattern of competition for different tariffs. If a country raises its tariff, the profits of both producers increase, although the prote...

Posting a menu of three-part tariffs is a widespread phenomenon in the telecommunication industry. The paper provides a characterization of the implementability of allocation rules involving bunching in the linear framework of Mussa and Rosen [5]. I show that an allocation rule is non-decreasing if and only if it is implementable by a menu of threepart tariffs. Furthermore, I extend the notion ...

Tariff bindings and administered protection are two characteristics of the WTO that are little understood. Tariff bindings place a ceiling on tariffs that is not always reached, while administered protection ensures that all sectors have access to some minimum import protection, effectively creating a floor for protection. How do these policies affect applied MFN tariff rates that are enacted t...

We measure the effects of trade liberalization over the period of 1993-2002 on regional poverty levels in 259 Indonesian regions, and investigate the labour market mechanisms behind these effects. The identification strategy relies on combining information on initial regional labour and product market structure with the exogenous tariff reduction schedule over four three-year periods. We distin...

Abstract The rise of economic protectionism worldwide has come with the re-emergence mercantilist policies whereby governments push for exports while restricting imports. Against this populist approach, we show that importing inputs can raise productivity and export. Using firm-level data matched very detailed customs Indonesia’s imports during 2008–2012, apply instrumental variable strategy im...

We derive a simple equation for the welfare gains from trade when tariffs are liberalized or iceberg trade costs fall. Covering various one-sector trade models that may or may not feature extensive margins and imperfect competition, we generalize the analysis of Arkolakis, Costinot and Rodriguez-Clare (2012) to encompass revenue-generating import tariffs. Our formula permits easy quantification...

ABARE project 1653 Natural gas demand forecasts are used by regulatory bodies when setting transmission and distribution tariffs. Reviews of current forecasting methodology used by gas companies indicate that the current approaches may be inappropriate for forecasting gas demand. The modeling methodology for gas demand forecasting and the implications of the results for the regulation of transm...