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The Gains from Trade for a Monetary Economy Once Again

Theodore Palivos and Chong Yip

Canadian Journal of Economics, 1997, vol. 30, issue 1, 208-23

Abstract: The authors examine the effects of free trade on a small open economy within a dynamic generalized cash-in-advance model. They provide a complete characterization for the possibility of harmful trade and suggest alternative economic policies that can convert the loss associated with free trade into a gain. They authors also find, contrary to standard results, that there exists an optimal tariff for a small open economy, and they use calibration methods to assess its value.

Date: 1997
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Citations: View citations in EconPapers (10)

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Working Paper: The Gains from Trade for a Monetary Economy Once Again (1996)
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