Tariff Reform in the Presence of Sector-specific Distortions

John Beghin () and Larry Karp

Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series from Department of Agricultural & Resource Economics, UC Berkeley

Abstract: The problem of choosing second-best trade policies is modified by including sector-specific policies as well as tariffs. We obtain conditions under which reduction of the largest tariff is welfare improving. Formulae for the optimal tariff and sector-specific subsidy are used to study the design of optimal policy menus. The theory is illustrated by an empirical general equilibrium model of the U. S. economy which emphasizes agriculture. The model suggests that reductions in agricultural protection in the United States would be welfare improving.

Keywords: agricultural policies; cge models; commercial policy; equilibrium (economics); farm products; marketing; tariff (search for similar items in EconPapers)
Date: 1990-02-01
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Tariff Reform in the Presence of Sector-Specific Distortions (1992)
Working Paper: Tariff Reform in the Presence of Sector-Specific Distortions (1992)
Working Paper: Tariff reform in the presence of sector-specific distortions (1990)
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