Publication
Jul 2011
In this paper, the authors show that Buy-American clauses of stimulus packages, increases in trade barriers or tariffs, or increases in export subsidies are not effective responses to economic downturns. Although Buy-American clauses and export subsidies stimulate output in the short run, they are less effective than general government spending impulses. Raising tariffs or trade barriers even decreases output.
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English (PDF, 32 pages, 629 KB) |
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Author | Mario Larch, Wolfgang Lechthaler |
Series | Kiel Institute Working Papers |
Issue | 1717 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2011 Kiel Institute for the World Economy |