Publication
Apr 2011
Why are empirically observed tariffs so much lower than theoretically calculated Nash-equilibrium tariffs? The authors argue that this gap can be narrowed by using a dynamic model instead of a static model. This approach has two advantages: it allows to take account of the transitional process after a change in tariffs and the shortsightedness of policy makers.
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English (PDF, 28 pages, 470 KB) |
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Author | Mario Larch, Wolfgang Lechthaler |
Series | Kiel Institute Working Papers |
Issue | 1695 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2011 Kiel Institute for the World Economy |