The B.E. Journal of Economic Analysis & Policy
Ed. by Auriol , Emmanuelle / Brunner, Johann / Fleck, Robert / Friebel, Guido / Ludwig, Sandra / Requate, Till / Schneider, Hilmar / Tsui, Kevin / Wichardt, Philipp / Zulehner, Christine
2 Issues per year
Increased IMPACT FACTOR 2012: 0.551
5-year IMPACT FACTOR: 0.760
Volume 12 (2012)
Volume 11 (2011)
Volume 9 (2009)
Volume 6 (2006)
Volume 4 (2004)
Volume 2 (2002)
Volume 1 (2001)
Most Downloaded Articles
- Stemming the Tide? The Effect of Expanding Medicaid Eligibility On Health Insurance Coverage by Shore-Sheppard, Lara D.
- Cost Recovery, Efficiency, and Economic Organization for Water Utilities by Loehman, Edna T.
- An Economic Response to Unsolicited Communication by Loder, Theodore/ Van Alstyne, Marshall and Wash, Rick
- Measurement Error in Schooling: Evidence from Samples of Siblings and Identical Twins by Light, Audrey and Flores-Lagunes, Alfonso
- The Causal Effect of Studying on Academic Performance by Stinebrickner, Ralph and Stinebrickner, Todd R.
Protection and the Business Cycle
Citation Information: Advances in Economic Analysis & Policy. Volume 3, Issue 1, ISSN (Online) 1538-0637, DOI: 10.2202/1538-0637.1139, September 2003
- Published Online:
Empirical studies have repeatedly documented the countercyclical nature of trade barriers. In this paper, we propose a simple theoretical framework that is consistent with this and other empirical regularities in the relationship between protection and the business cycle. Focusing on self-enforcing trade agreements, we find theoretical support for countercyclical movements in protection levels. The fast growth in trade volume that is associated with a boom phase facilitates the maintenance of more liberal trade policies than can be sustained during a recession phase in which growth is slow. We also find that acyclic increases in the level of trade volume give rise to protection, implying that whether rising imports are met with greater liberalization or increased protection depends on whether they are part of a cyclic upward trend in trade volume or an acyclic increase in import levels.