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This paper introduces the concept of a steepest ascent tariff reform for a small open economy. By construction, it is locally optimal in that it yields the highest gain in utility of any feasible tariff reform vector of the same length. Accordingly, it provides a convenient benchmark for the...
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The paper studies the dynamic welfare and macroeconomic effects of a revenue-neutral strategy of offsetting tariff reductions with increases in destination-based consumption taxes. To this end, we employ a dynamic general equilibrium model of a small open developing economy, featuring endogenous...
Persistent link: https://www.econbiz.de/10013117315
This paper considers the effects of trade policy--tariffs and quotas--when importing is done by competitive traders who … conventional ranking of tariffs and quotas is turned on its head: quotas are not as bad for welfare as previously believed, while … tariffs may restrict trade by more than originally intended. Furthermore, the allocation of property rights (quota licenses …
Persistent link: https://www.econbiz.de/10003468343
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This paper considers the effects of trade policy - tariffs and quotas - when importing is done by competitive traders … conventional ranking of tariffs and quotas is turned on its head: quotas are not as bad for welfare as previously believed, while … tariffs may restrict trade by more than originally intended. Furthermore, the allocation of property rights (quota licenses …
Persistent link: https://www.econbiz.de/10012776967
This paper considers the effects of trade policy--tariffs and quotas--when importing is done by competitive traders who … conventional ranking of tariffs and quotas is turned on its head: quotas are not as bad for welfare as previously believed, while … tariffs may restrict trade by more than originally intended. Furthermore, the allocation of property rights (quota licenses …
Persistent link: https://www.econbiz.de/10012760125