Kreickemeier, Udo; Raimondos-Møller, Pascalis - C.E.P.R. Discussion Papers - 2006
We show that the standard concertina result for tariff reforms -- i.e. lowering the highest tariff increases welfare -- no longer holds in general if we allow for international capital mobility. The result can break down if the good whose tariff is lowered is not capital intensive. If the...