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Voting on Tariff and Retaliation

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  • VAN YPERSELE, Tanguy

    (Center for Operations Research and Econometrics (CORE), Université catholique de Louvain (UCL), Louvain la Neuve, Belgium)

Abstract

In this paper, we analyze the trade war between two large countries when the trade policy is decided through majority voting. We show how the trade war equilibrium depends on the median voter production factor relative endowment. We compare this equilibrium to the one analyzed by Johnson where the trade policy is driven by an utilitarian benevolent dictator.

Suggested Citation

  • VAN YPERSELE, Tanguy, 1996. "Voting on Tariff and Retaliation," LIDAM Discussion Papers CORE 1996030, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:1996030
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    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp1996.html
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    Cited by:

    1. Liebman, Benjamin H. & Reynolds, Kara M., 2022. "Casualties of trade wars," European Economic Review, Elsevier, vol. 148(C).

    More about this item

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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