We examine welfare and revenue effects of tariff and tax reform in a country importing final and intermediate goods, both of which are produced under imperfect competition. We consider two reform strategies. First, lower the sum of a consumption tax and a tariff on the intermediate good, and...

In this paper we present a model of tied aid to shed light on the dispute between Kemp and Kojima (1985) and Schweinberger (1990) and to complement their analyses. We show that if the households of the recipient country are not informed of the transfers at their consumption decision, they have...