Terms of Trade Shocks and Domestic Prices Under Tariffs and Quotas: a Note
DEOS Working Papers from Athens University of Economics and Business
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.
Keywords: IMPORTATIONS; PROTECTIONISM; LABOUR SUPPLY (search for similar items in EconPapers)
JEL-codes: F10 F13 (search for similar items in EconPapers)
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Persistent link: http://EconPapers.repec.org/RePEc:aue:wpaper:117
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