Title data
Larch, Mario ; Lechthaler, Wolfgang:
Whom to send to Doha? The Short-sighted Ones!
In: Review of Economic Dynamics.
Vol. 16
(2013)
Issue 4
.
- pp. 634-649.
ISSN 1094-2025
DOI: https://doi.org/10.1016/j.red.2012.10.006
Abstract in another language
Why are empirically observed tariffs so much lower than theoretically calculated Nash-equilibrium tariffs? We argue that this gap can be narrowed by using a dynamic model instead of a static model. This approach has two advantages. (i) It allows us to take account of the transitional process after a change in tariffs. (ii) It allows us to take account of the shortsightedness of policy makers. We show that Nash-equilibrium tariffs based on a dynamic trade model are lower than Nash-equilibrium tariffs based on a static model. We also show that shortsighted politicians tend to set lower tariffs than politicians with a long planning horizon.
Further data
Item Type: | Article in a journal |
---|---|
Refereed: | Yes |
Keywords: | Nash-equilibrium tariffs; static; dynamic |
Subject classification: | F11, F12, F13 |
Institutions of the University: | Faculties > Faculty of Law, Business and Economics > Department of Economics > Lehrstuhl Volkswirtschaftslehre VI: Empirische Wirtschaftsforschung Faculties > Faculty of Law, Business and Economics > Department of Economics > Lehrstuhl Volkswirtschaftslehre VI: Empirische Wirtschaftsforschung > Lehrstuhl für Volkswirtschaftslehre VI: Empirische Wirtschaftsforschung - Univ.-Prof. Dr. Mario Larch Faculties Faculties > Faculty of Law, Business and Economics Faculties > Faculty of Law, Business and Economics > Department of Economics |
Result of work at the UBT: | Yes |
DDC Subjects: | 300 Social sciences > 330 Economics |
Date Deposited: | 15 Oct 2015 10:54 |
Last Modified: | 15 Oct 2015 10:54 |
URI: | https://eref.uni-bayreuth.de/id/eprint/16665 |