Publication Type

Journal Article

Version

acceptedVersion

Publication Date

3-2024

Abstract

What is the most cost-efficient way to impose trade sanctions against Russia? We build a quantitative model of international trade with input–output connections. Sanctioning countries choose import tariffs to simultaneously maximize their income and minimize Russia's income, with different weights placed on these objectives. We find, first, that for countries with low willingness to pay for sanctions against Russia, the most cost-efficient sanction is an approximately 20% tariff on all Russian products. Second, if countries are willing to pay at least US$0.70 for each US$1 drop in Russian welfare, an embargo on Russia's mining and energy products is the most cost-efficient policy.

Keywords

Trade sanctions, tariff, tariff competition

Discipline

International Economics

Research Areas

International Economics

Publication

Journal of Monetary Economics

First Page

1

Last Page

47

ISSN

0304-3932

Identifier

10.1016/j.jmoneco.2024.103572

Publisher

Elsevier: 24 months

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1016/j.jmoneco.2024.103572

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