DP21264 Tariffs, Automation, and Business Dynamism

Business

Can protectionism revive domestic production, slow automation, and help routine workers? We address this question in a dynamic open-economy model with heterogeneous firms, endogenous entry, and task-based production in which routine tasks can be performed by workers or robots. Import tariffs reallocate demand toward domestic goods, reshape markups and entry incentives, and generate fiscal revenues rebated to households. As a result, tariffs raise GDP and consumption measured at market prices

DP21264 Tariffs, Automation, and Business Dynamism https://cepr.org/ - 09.03.2026 21:05

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DP21264 Tariffs, Automation, and Business Dynamism https://cepr.org/ - 09.03.2026 21:05