Lerner paradox

In economics, the Lerner paradox is the theoretical possibility that imposing tariffs raises the world price of the import good, causing a deterioration of the tariff-imposing country's terms of trade.[1][2] Abba Lerner showed the possibility in his 1936 article.[3]

  1. ^ Grossman, G. (2016) "The Purpose of Trade Agreements." NBER Working Paper No. 22070, page 13, footnote 12.
  2. ^ Deardorff, A. Deardorffs' Glossary of International Economics: Lerner Paradox. Accessed on September 15, 2021.
  3. ^ Lerner, A. P. (1936) "The Symmetry Between Import and Export Taxes." Economica, 3(11): 306-313.