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Jealousy of Trade: Exclusionary Preferences and Economic Nationalism / Alex Imas, Kristóf Madarász, Heather Sarsons.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Imas, Alex.
Contributor:
Madarász, Kristóf.
Sarsons, Heather.
National Bureau of Economic Research.
Series:
Working Paper Series (National Bureau of Economic Research) no. w34351.
NBER working paper series no. w34351
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2025.
Summary:
This paper presents a new framework for understanding economic nationalism based on an empirically-validated desire for mimetic dominance that generates a preference for exclusionary policies. We incorporate such preferences into a frictionless model of international trade. Exclusionary preferences lead people to favor tariffs and protectionist policies that harm both their trading partner's and their own consumption. This implies that higher prices caused by exclusionary policies like tariffs will be more acceptable than those caused by non-exclusionary policies. We provide support for these predictions through two survey experiments, which also account for the role of cognitive biases and misinformation.
Notes:
October 2025.
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