Open Access. Powered by Scholars. Published by Universities.®

International Economics Commons

Open Access. Powered by Scholars. Published by Universities.®

Other Economics

1988

Articles 1 - 2 of 2

Full-Text Articles in International Economics

The Optimal Tariff, Production Lags, And Time Consistency, Harvey E. Lapan Jun 1988

The Optimal Tariff, Production Lags, And Time Consistency, Harvey E. Lapan

Economics Publications

The optimal tariff for a large country equals the reciprocal of the foreign export elasticity of supply. However, if production decisions occur before consumption decisions, the ex ante optimal tariff is not time consistent because the ex post elasticity is less than the ex ante elasticity. We show all countries are worse off if the large country cannot precommit to its ex ante optimal tariff, and that all countries can gain if the large country taxes domestic production of importables.


To Bargain Or Not To Bargain: That Is The Question, Harvey E. Lapan, Todd Sandler May 1988

To Bargain Or Not To Bargain: That Is The Question, Harvey E. Lapan, Todd Sandler

Economics Publications

We use economic analysis in a simple game-theory framework to ascertain under what circumstances a government would want to precommit itself to a no-negotiation strategy. From the government viewpoint, we examine both the choice of deterrence expenditure (i.e., expense meant to reduce terrorist logistical success during incidents) and whether to negotiate or not.