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Demonstrates the implications of imperfect substitutability between domestic and imported final goods for the determination of second‐best ominal and effective tariffs in a general equilibrium setting. The analysis of second‐best interventions for given policy distortions extends that by...
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The distinction between nominal and effective tariffs (or protection) is well established in the theoretical literature, albeit in the context of the traditional analysis of inter‐industry trade flows. This analysis is based upon assumptions such as product and production homogeneity,...
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True protection concepts seek to measure the net or relative price effects of commercial policy interventions within a general equilibrium framework. True protection depends on substitutional relationships between sectors within an economy, which are influenced by factor endowments, and the...
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