Tariff endogeneity: Evidence from 19th century Europe

This paper tests an endogenous tariff model for six European countries from around the mid-19th century until the eve of World War 1 (WW1). The tariff rate was generally cointegrated with real GNP, real wages, the price level and the external trade balance. Results from Granger-causality tests suggest that real GNP and the price level may be important endogenous determinants of tariff levels.