A Trade-Promoting Trade Theory
Chung-Hua Institution for Economic Research
April 17, 2009
This paper develops a consistent trade theory that links the partial and the general equilibrium models together. The new theory proves that tariff of any magnitude is bad, and confirms that free trade is optimal. It also goes beyond comparative advantage to explain competitive trade and to support trade liberalization.
Number of Pages in PDF File: 26
Keywords: Optimal tariff, Metzler paradox, Lerner paradox, Butterfly effect
JEL Classification: F11, F13, F31working papers series
Date posted: April 18, 2009 ; Last revised: May 6, 2009
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo3 in 1.906 seconds