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Inequality and the relative reliance on tariffs

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Inequality and relative reliance on tariffs : theory and evidence

Katsimē, Margarita (contributor); … - 2005

In this paper we construct a Ricardian model of trade in vertically-differentiated products between a developing country and the (developed) rest of the world. Despite labour being the only factor of production in this model, tariffs (in addition to income taxes) have distributional consequences...