Tariff Wars and Trade Deals with Costly Government

John Burbidge and Gordon Myers

Review of International Economics, 2004, vol. 12, issue 3, 543-549

Abstract: The authors study a simple model of tariff wars and trade deals in which government revenue collection and disbursement uses resources. The introduction of costly governments leads to lower non‐cooperative tariffs, the possibility that a less costly government may win a tariff war, and fully cooperative trade deals where countries lower tariffs but do not eliminate them, even with lump‐sum taxes and transfers.

Date: 2004
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https://doi.org/10.1111/j.1467-9396.2004.00466.x

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Working Paper: Tariff Wars and Trade Deals with Costly Government (2000)
Working Paper: Tariff Wars and Trade Deals With Costly Government (2000)
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