Alternative Models

Erhan Artuc, Guido Porto and Bob Rijkers

Chapter Chapter 6 in The Inequality Adjusted Gains from Trade, 2022, pp 99-129 from Springer

Abstract: Abstract In this chapter, we study permutations of our baseline model to explore the implications of alternative assumptions about how labor markets work and how tariff government revenue is redistributed across households. In Sect. 6.1 we discuss a version of the model without labor markets and another with imperfectly mobile labor markets. In Sect. 6.2, we consider versions of the tax scheme where the tariff revenue loss has no effect on households and another model where the income tax that compensates for the revenue losses is raised via progressive taxation.

Date: 2022
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DOI: 10.1007/978-3-030-93060-8_6

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