Politically realistic objective functions and trade policy PROFs and tariffs
1987; Elsevier BV; Volume: 24; Issue: 3 Linguagem: Inglês
10.1016/0165-1765(87)90132-7
ISSN1873-7374
Autores Tópico(s)Global Financial Crisis and Policies
ResumoThis paper demonstrates a mathematical correspondence between the deus ex machina tariff formation approach and political economy approach. The correspondence implies that the tariff chosen by lobbying-influenced policy makers will be equivalent to a tariff chosen by a deus ex machina government that gives 'too much' weight to profits. This result allows many political economy issues to be addressed in the simple framework of a deus ex machina government which faces a politically realistic objective function (PROF).
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