On tariffs and smuggling |
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Authors: | Yeong-Her Yeh |
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Institution: | (1) University of Hawaii, USA |
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Abstract: | The purpose of this paper is to show that if a country wants to eliminate smuggling, it may have to increase rather than decrease
the tariff. This paradoxical case could take place if the country in question is large and the foreign elasticity of demand
for imports is inelastic. |
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Keywords: | |
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