This work explicitly introduces the government activity to collect and transfer unemployment allowances into the Harris-Todaro model. It examines both the effectiveness of various policy tools and the effect this activity has on welfare. The findings with certain qualifications are that the...

Bhagwati and Srinivasan (1980) demonstrated the interesting possibility that once revenue seeking is introduced the Metzler paradox may arise even for a small country: that is, a tariff will decrease the output of the inportable good. In this note, we establish the conditions under which the...