A Factor Tariff, Domestic Supply, and Income

Henry Thompson

No auwp2013-12, Auburn Economics Working Paper Series from Department of Economics, Auburn University

Abstract: A factor tariff raises the cost of production and reduces output in a small open neoclassical economy. In the present model the tariff also raises the price of the import competing factor, increasing its quantity supplied. Factor substitution, factor shares, and the price elasticity of factor supply determine adjustments to a factor tariff. Under some conditions, the tariff raises income. The model relates to economic growth and macroeconomic theory with an imported factor of production.

Keywords: Energy Tariffs; Factor Tariffs; General Equilibrium (search for similar items in EconPapers)
JEL-codes: F11 (search for similar items in EconPapers)
Date: 2013-08
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://cla.auburn.edu/econwp/Archives/2013/2013-12.pdf (application/pdf)

Related works:
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:abn:wpaper:auwp2013-12

Access Statistics for this paper

More papers in Auburn Economics Working Paper Series from Department of Economics, Auburn University Contact information at EDIRC.
Bibliographic data for series maintained by Hyeongwoo Kim ().