The Economics of Country-Specific Tariffs

Grant W Gardner and Kent P Kimbrough

International Economic Review, 1990, vol. 31, issue 3, 575-88

Abstract: A three-country model of the world economy is used to show that, when effective, a country-specific tariff will have an impact on the world economy that is equivalent to the imposition of a uniform tariff plus a subsidy to the production of home importables in the favored country financed by a transfer from the home country. Lerner's symmetry theorem and the optimum tariff problem are discussed. Copyright 1990 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Date: 1990
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