We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Endogenous Tariff Formation.
- Authors
Mayer, Wolfgang
- Abstract
Interest in the process of tariff formation has grown considerably during the last decade. The political decisions on tariff rates are reflections of the selfish economic interests of voters, lobbying groups, politicians, or other decision makers in trade policy matters. The purpose of this article is to study some of the alternative determinants of tariff rates in a rigorously formulated general equilibrium model. In particular, the article attempts to evaluate the dependence of actual tariff rates on factor-ownership distribution, voter eligibility and participation rules and the degrees of factor mobility and industry diversification in the economy. This article also relates actual tariff structures to voter eligibility rules and, more importantly, to the existence of significant voting costs on the part of factor owners. Assumptions concerning both the economic structure and political process were deliberately chosen to allow tracing of the path from factor-ownership distributions to tariff policies. Although the assumptions are quite standard in the trade-theoretic and public choice literature, it would be most desirable to relax some of the restrictions.
- Subjects
COMMERCIAL policy; TARIFF; ECONOMIC equilibrium; FACTOR proportions; TRADE regulation; DECISION making; ECONOMIC structure
- Publication
American Economic Review, 1984, Vol 74, Issue 5, p970
- ISSN
0002-8282
- Publication type
Article