The Dynamic and Distributional Aspects of Import Tariffs

Wolfgang Lechthaler and Mariya Mileva

Open Access Publications from Kiel Institute for the World Economy from Kiel Institute for the World Economy (IfW Kiel)

Abstract: We use a dynamic trade model with two sectors and two types of workers to analyze the optimal setting of income-generating tariffs. We study dynamic and distributional aspects focusing on the time horizon of policymakers and workers. The level of tariffs preferred by workers depends on the sector where they are employed as well as their skill class, with the relative weight of both aspects determined by the time horizon of the workers. Unskilled workers in the unskilled-intensive sector are the ones most in favor of protectionism and might even benefit from a trade war.

Date: 2021
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https://www.econstor.eu/bitstream/10419/230938/1/iere-12484.pdf (application/pdf)

Related works:
Journal Article: THE DYNAMIC AND DISTRIBUTIONAL ASPECTS OF IMPORT TARIFFS (2021)
Working Paper: THE DYNAMIC AND DISTRIBUTIONAL ASPECTS OF IMPORT TARIFFS (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkie:230938

DOI: 10.1111/iere.12484

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