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reducing public revenues, showing that for a small open economy, a cut in tariffs combined with a point-for-point increase in …
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and an advanced region. In our baseline calibration, a revenue-neutral reform that lowers tariffs in developing countries …
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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...
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