Tariffs, Retaliation, and the Elasticity of Demand for Imports

Abstract

This article has two main purposes:

• 1. To examine the effects of tariffs on the volume and terms of trade.2

• 2. To examine the conditions under which a given country will gain from a tariff war.

This is Journal Paper Number J-3159, of the Iowa Agricultural Experiment Station, Ames, Iowa: Project No. 1200. An earlier version of this paper was read to the Economic Club at Ames in January 1957. I am indebted to Mr. A. G. Frank and other members of the club for useful comments.