Caliendo, Lorenzo; Feenstra, Robert C.; Romalis, John; … - National Bureau of Economic Research - 2021
- marginalization of domestic markups creates a strong incentive to lower the optimal tariff on imported inputs. In a 186-country … quantitative model, the median optimal tariff is 10%, and negative for five countries, as compared to 27% in manufacturing from the … one-sector, optimal tariff formula without roundabout production …