Arguments in favor of a strategic trade policy are based on the assumption that the government can credibly precommit to a policy that will not be altered, even if it is suboptimal ex post. This paper examines the implications of relaxing this assumption; to this end, a three-stage game is...

We investigate the significance of borrowing constraints in the market for consumer loans. Using data from the Consumer Expenditure Survey on auto loan contracts we estimate the elasticities of loan demand with respect to interest rate and maturity. We find that, with the exception of high...