Article history: Received 16 June 2009 Accepted 19 April 2010 Available online xxxx JEL classification: E31 E50 E52 E58 F41

Welfare effect of tariff for a small country in the case of traditional tariff (exogenous) compared to free trade would decrease the welfare of the country. This paper has shown that the welfare effect of tariff in case of untraditional tariff (endogenous) can be explained by using the specific factors models (Jones) that fundamentally determined by Cournut- Nash Equilibrium system in contrary ...

abstract the purpose of this paper is to test the hypothesis first proposed by romer (1993); suggesting that inflation is lower in more open economies. according to this hypothesis, central banks have a lower incentive to engineer surprise inflations in more-open economies because the phillips curve is steeper. furthermore, comparing with other empirical studies, this paper has used the new kof...

We use microdata collected at the border and store to characterize price impact of recent US trade policy on importers, exporters, consumers. At border, import tariff pass-through is much higher than exchange rate pass-through. Chinese exporters did not lower their dollar prices by much, despite appreciation dollar. By contrast, significantly lowered affected foreign retaliatory tariffs. In sto...

The present paper integrates neoclassical offer curves and production theory, introducing utility maximization and trade levels into the comparative static factor proportions model. The paper analyzes production conditions that determine the Metzler paradox that a tariff could lower the tariff inclusive import price. The model provides a more complete link between neoclassical and factor propor...

A simple two-country model of economic geography is constructed in order to examine the effect of tariff competition on the spatial distribution of manufacturing activities as well as on welfare. We show that when the transport cost is sufficiently small, tariff competition with firm migration leads to a core-periphery economy, where one of the two countries imposes no tariff in Nash equilibriu...

Mercosur has achieved important advances like the removal of intrabloc tariff and non-tariff barriers and the establishment of a common external tariff for most products. However, its ambitious plans to deepen the integration process comprising harmonisation of policies in areas like competition policy, government procurement, technical barriers and phytosanitary measures have not been implemen...

To analyze the effects on prices of simultaneous tariff reductions by multiple importing countries, we construct a simple three-country model where a good is produced by a monopolist with non-constant marginal cost and imported by two countries. We specifically compare two representative tariff-reduction formulas: the "fixed-amount" and the "uniform percentage" reductions. The uniform percentag...

Search is embeded in an overlapping-generations model. Young people participate a centralized market and a decentralized market sequentially and olds only participates the centralized market. The demographic feature allows analytical tractability. In a series examples, positve inflation rates are Pareto optimal. JEL classification: E31

This paper examines how a tariff affects firms’ efforts to produce safer foods that are supplied to consumers whose preference for safety of foods are different. I analyze the optimal trade policy for importing country that can impose a tariff or a subsidy on the foods. I show that the raise in tariff rate makes importing country’s firm chooses less effort to produce safer foods but foreign fir...