Abstract

  


 



Optimal Tariffs in Consistent Conjectural Variations Equilibrium


Stephen J. Turnovsky


University of Washington - Institute for Economic Research; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
March 1987

NBER Working Paper No. w1872

Abstract:     
This paper analyzes the determination of the optimal tariff under the assumption of Consistent Conjectural Variations (CCV). A general characterization of the CCV equilibrium is given. We show that (i) there are, in general, a multiplicity of such equilibria, and (ii) under certain restrictions, the Cournot equilibrium, which is based on the assumption of no retaliation can also be a CCV equilibrium. By contrast, free trade is never a CCV equilibrium. Finally the CCV equilibrium is solved explicitly in a simple example.

Number of Pages in PDF File: 17

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Date posted: June 22, 2004  

Suggested Citation

Turnovsky, Stephen J., Optimal Tariffs in Consistent Conjectural Variations Equilibrium (March 1987). NBER Working Paper No. w1872. Available at SSRN: http://ssrn.com/abstract=341827

Contact Information

Stephen J. Turnovsky (Contact Author)
University of Washington - Institute for Economic Research ( email )
Seattle, WA 98195
United States
206-685-8028 (Phone)
206-543-5955 (Fax)
CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
Poschinger Str. 5
Munich, DE-81679
Germany
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