Tariff Wars and Trade Deals With Costly Government
John B. Burbridge () and
Gordon Myers
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John B. Burbridge: McMaster University, http://socserv2.socsci.mcmaster.ca/~econ
Authors registered in the RePEc Author Service: John Burbidge
Discussion Papers from Department of Economics, Simon Fraser University
Abstract:
We study a simple model of tariff wars and trade deals in which government revenue collection and disbursement uses resources. The introduction of a costly government 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.
Pages: 17 pages
Date: 2000, Revised 2000-06-08
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Journal Article: Tariff Wars and Trade Deals with Costly Government (2004) 
Working Paper: Tariff Wars and Trade Deals with Costly Government (2000) 
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