|
|
|
|
Title: |
Tariff and Defensive Responses: A
Computational Analysis |
| Author: |
Deardorff, Alan
V.; Stern, Robert M. |
| Author
Affiliation: |
U MI |
| Source: |
International Economic Journal, Summer 1987, v. 1, no. 2, pp. 1-23 |
|
Publication Date: |
Summer 1987 |
|
Abstract: |
We use the Michigan Model of World
Production and Trade to analyze how other countries might be affected by
unilateral import surcharge and then to determine how large a surcharge
might be required if these countries wanted to offset the detrimental
effects that the U.S. action had on them. Our computational results
suggest that several countries would not try to offset the U.S. action
since doing so might make them worse off. But some of the major U.S.
trading partners (Japan, Germany, Italy, and the United Kingdom) might
feel compelled to introduce countermeasures to defend themselves. More
gradually, our computations show how complex defensive responses may be
because a given country may not know or be able to anticipate the
effects of the responses of all other countries. |
|
