The Optimal Degree of Reciprocity in Tariff Reduction

The Optimal Degree of Reciprocity in Tariff Reduction

This paper characterizes the optimal reciprocal trade policy in the environment of Melitz (2003) with firm productivity heterogeneity. In particular, without making parametric assumptions on firm productivity distribution, this paper derives the optimal degree of reciprocal tariff reductions that...

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Bibliographic Details
Main Author: Pao-Li Chang
Format: Article
Language:English
Published: Korea Institute for International Economic Policy 2020-09-01
Series:East Asian Economic Review
Subjects:
firm heterogeneity
reciprocal trade policy
import tariff
markup distortion
aggregate productivity
Online Access:https://dx.doi.org/10.11644/KIEP.EAER.2020.24.3.378

Internet

https://dx.doi.org/10.11644/KIEP.EAER.2020.24.3.378

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