Panagariya, Arvind - In: The World Economy 29 (2006) 11, pp. 1553-1570
This paper expounds on a well-known and widely influential paper 'Domestic Distortions, Tariffs and the Theory of Optimum Subsidy' (1963) by Bhagwati in collaboration with V. K. Ramaswami. The message of the paper, which set in trail a number of publications, was that in the case of a small open...