Bown, Chad P.Crowley, Meredith A.2012-03-192012-03-192010-03-01https://hdl.handle.net/10986/3710This paper estimates a model of a government making trade policy adjustments under a self-enforcing trade agreement in the presence of economic shocks. The empirical model is motivated by the formal theories of cooperative trade agreements. The authors find evidence that United States' use of its antidumping policy during 1997-2006 is consistent with increases in time-varying "cooperative" tariffs, where the likelihood of antidumping is increasing in the size of unexpected import surges, decreasing in the volatility of imports, and decreasing in the elasticities of import demand and export supply. The analysis finds additional support for the theory that some US antidumping use is consistent with cooperative behavior through a second empirical examination of how trading partners responded to these new US tariffs. Even after controlling for factors such as the expected cost and benefit to filing a WTO dispute or engaging in antidumping retaliation, the analysis find that trading partners are less likely to challenge such "cooperative" US antidumping tariffs that were imposed under terms-of-trade pressure suggested by the theory.CC BY 3.0 IGOANTIDUMPINGANTIDUMPING ACTIONANTIDUMPING CASESANTIDUMPING DATABASEANTIDUMPING DECISIONSANTIDUMPING DUTIESANTIDUMPING DUTYANTIDUMPING POLICIESANTIDUMPING POLICYBILATERAL IMPORTSBILATERAL TRADEBUSINESS CYCLECOEFFICIENT ESTIMATECOMMERCIAL POLICYCONTROL VARIABLESCOUNTRY DUMMYCURRENCYDEMAND CURVEDEMAND ELASTICITIESDEMAND ELASTICITYDEPENDENT VARIABLEDEPENDENT VARIABLESDEVELOPING COUNTRIESDISPUTE SETTLEMENTDISPUTE SETTLEMENT PROCEDURESDISPUTE SETTLEMENT PROCESSDOMESTIC INDUSTRIESDOMESTIC INDUSTRYDUMMY VARIABLEDUMMY VARIABLESECONOMIC FLUCTUATIONSECONOMIC RESEARCHECONOMIC SHOCKECONOMIC SHOCKSECONOMIC THEORYELASTICITY OF EXPORTEQUILIBRIUMEXPECTED VALUEEXPLANATORY VARIABLEEXPLANATORY VARIABLESEXPORT GOODSEXPORT SUPPLYEXPORTEREXPORTERSEXPORTSEXTERNALITYFOREIGN COUNTRIESFOREIGN COUNTRYFOREIGN CURRENCYFOREIGN MARKETFOREIGN SOURCESFOREIGN TRADEFOREIGN TRADE POLICYGROWTH RATEGROWTH RATESIMPORTIMPORT DEMANDIMPORT GROWTHIMPORT PROTECTIONIMPORT RESTRICTIONIMPORT RESTRICTIONSIMPORT VOLUMEIMPORT VOLUMESINCOME REDISTRIBUTIONINDICATOR VARIABLESINTERNATIONAL TRADEINTERNATIONAL TRADE COMMISSIONINVENTORIESINVENTORYLOW TARIFFSMARGINAL EFFECTSMARKET ACCESSMARKET ECONOMIESMARKET POWERMARKET SHAREMARKET SHARESMEMBER COUNTRIESMEMBER COUNTRYNASH EQUILIBRIUMOPPORTUNITY COSTOPPORTUNITY COSTSOPTIMAL TARIFFOPTIMAL TARIFFSPOLITICAL ECONOMYPOSITIVE EFFECTSPREFERENTIAL TRADEPREFERENTIAL TRADE AGREEMENTREAL APPRECIATIONREAL EXCHANGE RATEREAL EXCHANGE RATESRECIPROCITYROBUSTNESS CHECKROBUSTNESS CHECKSSTANDARD DEVIATIONTARIFF CHANGETARIFF CONCESSIONTARIFF FORMATIONTARIFF INCREASETARIFF INCREASESTARIFF LINETARIFF ON IMPORTSTARIFF POLICYTARIFF REDUCTIONTERMS OF TRADETERMS OF TRADE GAINTERMS-OF-TRADE EFFECTTERMS-OF-TRADE GAINSTOTAL EXPORTSTRADE AGREEMENTTRADE AGREEMENTSTRADE BARRIERSTRADE DEFLECTIONTRADE DISPUTESTRADE EFFECTTRADE FLOWSTRADE GROWTHTRADE MOTIVESTRADE PARTNERTRADE POLICIESTRADE POLICYTRADE PROTECTIONTRADE REMEDIESTRADE VOLUMETRADE VOLUMESTRADING PARTNERTRADING PARTNERSVALUE OF IMPORTSWORLD TRADEWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/1813-9450-5223