Prof. Olarreaga's new paper in the JPE
GSEM Professor Marcelo Olarreaga’s joint paper with Alessandro Nicita (United Nations Conference on Trade and Development – UNCTAD) and Peri Silva (Kansas State University) will be published in the upcoming edition of the Journal of Political Economy.
Congratulations on the successful publication in this top Journal!
This paper examines the extent to which tariff cooperation is observed among World Trade Organization (WTO) members. With the help of a simple political economy model, the authors show that tariffs are positively correlated with the importer's market power when they are set non-cooperatively, but negatively correlated when set cooperatively. They use this prediction to empirically identify the extent of cooperation in the WTO, and find that more than three quarters of WTO members' tariffs are set non-cooperatively.
2 février 2017