Government budget balance forces the endogenous use of distortionary tax instruments" when an exogenous reform is implemented. The aggregate efficiency of such reforms is based" on comparisons of simple summary measures of the Marginal Cost of Funds of the various tariff" or quota changes with...

Results from a two-step simulation that uses a computable general equilibrium model and detailed consumption and income household data suggests that trade liberalization benefits people in the poorest deciles more than those in the richer ones