International sanctions and limits of Lerner Symmetry

Itskhoki, Oleg and Mukhin, Dmitry (2023) International sanctions and limits of Lerner Symmetry. AEA Papers and Proceedings, 113. pp. 33-38. ISSN 2574-0768

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Abstract

After a wave of globalization, trade wars and financial sanctions again become frequent tools of international policymaking, leading to an increased interest in the consequences and effectiveness of international sanctions. Itskhoki and Mukhin (2022b) show that Lerner symmetry provides an important benchmark with import and export sanctions equivalent in terms of their effects on allocations and welfare. This abstracts from several practical issues, including the timing of sanctions, interactions between trade and financial restrictions, and the effects of sanctions on the financial sector. We incorporate these features to study their implications and emphasize points of departure from Lerner symmetry.

Item Type:	Article
Additional Information:	© 2023 The Author
Divisions:	Economics
Subjects:	H Social Sciences > HB Economic Theory
JEL classification:	F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies F - International Economics > F1 - Trade > F13 - Commercial Policy; Protection; Promotion; Trade Negotiations; International Trade Organizations F - International Economics > F3 - International Finance > F32 - Current Account Adjustment; Short-Term Capital Movements F - International Economics > F3 - International Finance > F34 - International Lending and Debt Problems F - International Economics > F5 - International Relations and International Political Economy > F51 - International Conflicts; Negotiations; Sanctions
Date Deposited:	08 Nov 2023 14:45
Last Modified:	08 Nov 2023 15:06
URI:	http://eprints.lse.ac.uk/id/eprint/120671

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