Optimal Tariffs and Market Power: The Evidence

• 成果类型: Article
• 署名作者: Broda, Christian; Limao, Nuno; Weinstein, David E.
• 署名单位: University of Chicago; University System of Maryland; University of Maryland College Park; Columbia University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.98.5.2032
• 发表日期: 2008
• 页码: 2032-2065
• 关键词: trade; PROTECTION; sale; wars

摘要

We find that prior to World Trade Organization membership, countries set import tar tariffs 9 percentage points higher on inelastically supplied imports relative to those supplied elastically. The magnitude of this of effect is similar to the size of average tariffs in these countries, and market power explains more of the tariff variation than a commonly used political economy variable. Moreover, US trade restrictions not covered by the WTO are significantly higher oil goods where the United States has more market power. We find strong evidence that these importers have market power and use it in setting noncooperative trade policy.