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Political Economy Approach
[entry]
The SAGE Glossary of the Social and Behavioral Sciences
unpublished
This paper develops a two-country model of international trade in which citizens who are heterogeneous with respect to their factor endowments vote over tariffs and income tax rates. In the politico-economic equilibrium, each country chooses its national policies by majority voting, taking the policy choice of the other country as given. By incorporating both income and trade taxes in a unified international-trade framework, we uncover the interplay between majority voting over these two
doi:10.4135/9781412972024.n1911
fatcat:ehc4wdk24regxc3hsqst3a2ci4