The paper analyzes environmental tax policy reform using a competitive model of world trade that includes production-generated environmental damage (pollution) and trade tariffs. The authors examine the feasibility of Pareto-improving multilateral reforms of environmental taxes, and show that...

This paper is concerned with proposals for multilateral reforms of tariffs taxes and quotas that are Pareto-improving in welfare when the reforms are not accompanied by any income transfers between countries. Starting from a tariffand quota distorted competitive equilibrium for a model of a...

We consider international labor (entrepreneur) mobility in a two-country overlapping-generations model. Interactions of decreasing and increasing returns in production yield multiple equilibria that are stable under adaptive learning. Governments have an unilateral incentive to reduce income...