Replication data for: Optimal Tariffs and Market Power: The Evidence
Principal Investigator(s): View help for Principal Investigator(s) Christian Broda; Nuno Limao; David E. Weinstein
Version: View help for Version V1
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Project Citation:
Broda, Christian, Limao, Nuno, and Weinstein, David E. Replication data for: Optimal Tariffs and Market Power: The Evidence. Nashville, TN: American Economic Association [publisher], 2008. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113273V1
Project Description
Summary:
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We find that prior to World Trade Organization membership, countries set
import tariffs 9 percentage points higher on inelastically supplied imports
relative to those supplied elastically. The magnitude of this effect is similar to
the size of average tariffs in these countries, and market power explains more of
the tariff variation than a commonly used political economy variable. Moreover,
US trade restrictions not covered by the WTO are significantly higher on goods
where the United States has more market power. We find strong evidence that
these importers have market power and use it in setting noncooperative trade
policy. (JEL F12, F13)
Scope of Project
JEL Classification:
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F12 Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
F13 Trade Policy; International Trade Organizations
F12 Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
F13 Trade Policy; International Trade Organizations
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