|
|
Metzler paradox |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Metzler paradoxThe possibility, identified by Metzler (1949), that a tariff may lower the domestic relative price of the imported good. This will happen if it drives the world price down by even more than the size of the tariff, as it may do if the foreign demand for the importing country's export good is inelastic.Similar MatchesHarberger-Laursen-Metzler EffectHarberger-Laursen-Metzler EffectThe conjecture or result that a terms of trade deterioration will cause a decrease in savings due to the decrease in real income, and therefore that a real depreciation will cause an increase in real expenditure. Due to Harberger (1950) and Laursen and Metzler (1950). Laursen-Metzler EffectLaursen-Metzler EffectSee Harberger-Laursen-Metzler Effect. |
|
|
|