NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Monika Mrázová

Geneva School of Economics and Management
University of Geneva
Uni Mail, Office M5262
40, Boulevard du Pont-d'Arve
CH 1211 Geneva
Switzerland

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliation: University of Geneva

NBER Working Papers and Publications

June 2018Choked By Red Tape? The Political Economy of Wasteful Trade Barriers
with Giovanni Maggi, Peter Neary: w24739
Red-tape barriers (RTBs) are an important source of trade costs, but have received little scholarly attention to date. Here we examine the economic-political determinants of RTBs and their effects on trade. Because of their wasteful nature, RTBs have very different implications from those of more traditional trade barriers. In particular, RTBs have important impacts on the extensive margin of trade, and respond in non-standard ways to changes in tariffs and natural trade costs. We argue that taking into account the endogenous response of RTBs is crucial for understanding the effects of tariff liberalization and globalization on trade and welfare.
 
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