Naya, José Méndez; Naya, Luciano Méndez - Instituto Universitario de Estudios e Desenvolvemento … - 1998
The effects of tariff wars on welfare are analysed for the case of trade between two countries with fixed outputs of the traded good. Assuming mild conditions, it is shown that if there are non-zero tariffs for which welfare-maximizing equilibrium holds, then free trade is not strictly...