Tariff and Equilibrium Indeterminacy--(II)

Zhang, Yan (2008): Tariff and Equilibrium Indeterminacy--(II).

Abstract

We establish conditions under which indeterminacy can occur in a small open economy oil-in the production RBC model with lump sum tariff revenue transfers. The indeterminacy would require that the steady state tariff rates be in an open interval. This means that as long as the government revenues are exogenous, our indeterminacy result will be robust to the usage of the government revenue.

• Item Type: MPRA Paper
• Language: English
• Keywords: Indeterminacy; Endogenous Tariff Rate; Small Open Economy; Lump Sum Transfers
• Subjects: F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy

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