Optimal import policies for importing countries are subsidies when network externalities and the number of importing countries are large, while they are tariffs when they are small. There is a case ...

We develop a new optimal tariff theory which is consistent with the fact that a larger country sets a lower tariff. In our dynamic Dornbusch-Fischer-Samuelson Ricardian model, the long-run welfare ...

Bessent "respectfully disagreed" before citing the optimal tariff theory, proposing a 10% tariff would allow currency to appreciate by 4%. "Finally, foreign manufacturers, especially China ...