International Trade, Factor Market Distortions And The Optimal Dynamic Subsidy

Harvey Lapan

ISU General Staff Papers from Iowa State University, Department of Economics

Abstract: International trade theorists have long favored free trade, arguing that the only proper basis for a tariff is in response to some monopoly power in international trade. Pragmatic politicians, on the other hand, wary of the wrath of their constituents, have often resorted to the use of tariffs, arguing that the protection afforded by tariffs was necessary to prevent unemployment...

Date: 1976-06-01
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Journal Article: International Trade, Factor Market Distortions, and the Optimal Dynamic Subsidy (1976)
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