EconPapers    
Economics at your fingertips  
 

Trade policy and redistribution when preferences are non-homothetic

Quy-Toan Do () and Andrei Levchenko

Economics Letters, 2017, vol. 155, issue C, 92-95

Abstract: We compare redistribution through trade restrictions vs. domestic lump-sum transfers. When preferences are non-homothetic, even domestic lump-sum transfers affect relative prices. Thus, contrary to the conventional wisdom, domestic lump-sum transfers are not necessarily superior to distortionary trade policy. We develop this argument in the context of food export bans imposed by many developing countries in the late 2000s.

Keywords: Trade restrictions; Redistribution; Non-homothetic preferences (search for similar items in EconPapers)
JEL-codes: F13 Q17 O24 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176517301015
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Trade Policy and Redistribution when Preferences are Non-Homothetic (2017) Downloads
Working Paper: Trade Policy and Redistribution when Preferences are Non-Homothetic (2017) Downloads
Working Paper: Trade Policy and Redistribution when Preferences are Non-Homothetic (2017) Downloads
Working Paper: Trade policy and redistribution when preferences are non-homothetic (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:155:y:2017:i:c:p:92-95

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-10-03
Handle: RePEc:eee:ecolet:v:155:y:2017:i:c:p:92-95