Tariff Reform in the Presence of Sector-Specific Distortions

John Beghin () and Larry Karp

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: The problem of choosing second-best trade policies is modified by including sector-policies as well as tariffs. Formulae for the optimal tariff and sector-specific subsidy are derived and used to study the design of optimal policy menus. The theory is applied to a computable general equilibrium model of the U.S. economy which emphasizes agriculture. The model suggests that non-agricultural distortions do not provide a second-best argument for substantial levels of agricultural protection.

Date: 1992-02-01
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Published in Canadian Journal of Economics, February 1992, vol. 25 no. 1, pp. 294-309

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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 (1990)
Working Paper: Tariff Reform in the Presence of Sector-specific Distortions (1990)
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Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:1581

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