Tariff wars, unemployment, and top incomes

被引:1
作者
Dinopoulos, Elias [1 ]
Heins, Gunnar [1 ]
Unel, Bulent [2 ]
机构
[1] Univ Florida, Dept Econ, Gainesville, FL 32611 USA
[2] Louisiana State Univ, Dept Econ, Baton Rouge, LA 70803 USA
关键词
Tariff wars; Optimal tariffs; Nash tariffs; Occupational choice; Entrepreneurs; Top incomes; Directed search; Unemployment; Welfare; LABOR-MARKET; FIRM HETEROGENEITY; OPTIMUM TARIFFS; WELFARE LOSS; TRADE; RETALIATION; INEQUALITY; SEARCH; SHOCKS; IMPACT;
D O I
10.1016/j.jmoneco.2024.103616
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
Motivated by the 2018-19 global tariff war, we develop a multi-country trade model with occupational choice, heterogeneous firms, and unemployment. The model features a complete tariff pass-through and positive optimal tariffs addressing product and labor-market distortions. The quantitative analysis of the model with four countries/regions shows that raising tariffs unilaterally by a country increases welfare but also raises unemployment and top incomes that country, whereas having the opposite impact on tariff-targeted countries. A global tariff reduces every country's welfare, unemployment, and top-income inequality, whereas moving from a worldwide tariff war to free trade raises every country's welfare, unemployment, top-income inequality.
引用
收藏
页数:14
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