@article{Karp:51112,
      recid = {51112},
      author = {Karp, Larry S. and Paul, Thierry},
      title = {PHASING IN AND PHASING OUT PROTECTIONISM WITH COSTLY  ADJUSTMENTS OF LABOUR},
      address = {1993},
      number = {943-2016-74681},
      series = {Working Paper},
      pages = {37},
      year = {1993},
      abstract = {We study the dynamics of optimal trade policy in a model  with costly inter-sectoral adjustment of labour, where  migrants pay less than the marginal social cost of  migration. If workers have rational expectations, a future  tariff has an announcement effect on the current migration  decision. If the government is able to commit itself to  future policy, the optimal trajectory involves phasing in  and then phasing out protection of the dying sector. This  contrasts with recommendations of gradual liberalization.  Without the ability to make commitments, the equilibrium  policy begins with and maintains free trade.},
      url = {http://ageconsearch.umn.edu/record/51112},
      doi = {https://doi.org/10.22004/ag.econ.51112},
}