English, Article, Journal or magazine article edition: OPTIMAL TARIFFS WHEN PRODUCTION IS FIXED Jose Mendez Naya; Luciano Mendez Naya

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Bookmark: http://trove.nla.gov.au/version/48745
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • OPTIMAL TARIFFS WHEN PRODUCTION IS FIXED
Author
  • Jose Mendez Naya
  • Luciano Mendez Naya
Physical Description
  • preprint
Notes
  • The effects of tariff wars on welfare are analysed for the case of trade between two countries with fixed outputs of the traded good. Assuming mild conditions, it is shown that if there are non-zero tariffs for which welfare-maximizing equilibrium holds, then free trade is not strictly preferable when the coutries' output are equal, and if there are not equal is strictly disadvantageous to the country with the smaller output. It is also shown that welfare-maximizing equilibria do exist if the demand function is linear.
  • Commercial policy; Trade negotiations; Market Structure and Firms Strategy; Multinational Firms, Free Trade
  • RePEc:edg:anecon:0005
Language
  • English
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