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Redundant Tariffs as Rational Endogenous Protection

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  • Feldman, David H
Abstract
Redundant protection, tariffs that exceed the domestic import-price differential, is an important feature of nineteenth century U.S. tariff history and remains a common practice in many developing countries. This paper develops political-economy models of the tariff-setting process when the world price of the importable product is stochastic. The optimal endogenous tariff may involve redundant protection even if agents are risk neutral. These political-economy models also permit us to assess the comparative static effects of changes in the mean-preserving spread of the world price under differing assumptions about the political process. Copyright 1993 by Oxford University Press.

Suggested Citation

  • Feldman, David H, 1993. "Redundant Tariffs as Rational Endogenous Protection," Economic Inquiry, Western Economic Association International, vol. 31(3), pages 436-447, July.
    • Handle: RePEc:oup:ecinqu:v:31:y:1993:i:3:p:436-47
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    Cited by:

    1. Michael D. Bordo & Barry Eichengreen & Douglas A. Irwin, 1999. "Is Globalization Today Really Different than Globalization a Hunderd Years Ago?," NBER Working Papers 7195, National Bureau of Economic Research, Inc.

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