TY  - JOUR
AU  - Turnovsky,Stephen J.
TI  - Optimal Tariffs in Consistent Conjectural Variations Equilibrium
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1872
PY  - 1987
Y2  - March 1987
UR  - http://www.nber.org/papers/w1872
L1  - http://www.nber.org/papers/w1872.pdf
N1  - Author contact info:
Stephen Turnovsky
Department of Economics
301 Savery Hall; Mail Stop DK 30
University of Washington
Seattle, WA   98195
Tel: 206-545-8028
E-Mail: sturn@u.washington.edu
AB  - This paper analyzes the determination of the optimal tariff under the assumption of Consistent Conjectural Variations (CCV). A general characterization of the CCV equilibrium is given. We show that (i) there are, in general, a multiplicity of such equilibria, and (ii) under certain restrictions, the Cournot equilibrium, which is based on the assumption of no retaliation can also be a CCV equilibrium. By contrast, free trade is never a CCV equilibrium. Finally the CCV equilibrium is solved explicitly in a simple example.
ER  -