The concept of “equilibrium” is fundamental to many disciplines, including economics and operations research. The theory of variational inequalities continues to provide a rich methodological framework for the formulation, analysis, and solution of a wide range of equilibrium problems with many recent applications, because of their relevance, including policies associated with the trade of commodities. In this paper, we add to the literature on multicommodity trade by constructing a spatial price equilibrium model with tariffs that allows for the investigation of rerouting of commodities to evade tariffs, as has been happening for several years now, along with “trade wars.”

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Multicommodity Trade, Tariffs, and Rerouting

  • Anna Nagurney,
  • Samirasadat Samadi

摘要

The concept of “equilibrium” is fundamental to many disciplines, including economics and operations research. The theory of variational inequalities continues to provide a rich methodological framework for the formulation, analysis, and solution of a wide range of equilibrium problems with many recent applications, because of their relevance, including policies associated with the trade of commodities. In this paper, we add to the literature on multicommodity trade by constructing a spatial price equilibrium model with tariffs that allows for the investigation of rerouting of commodities to evade tariffs, as has been happening for several years now, along with “trade wars.”