Revenue Neutral Trade Reform with Many Households, Quotas and Tariffs

James Anderson

No 6181, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Government budget balance forces the endogenous use of distortionary tax instruments" when an exogenous reform is implemented. The aggregate efficiency of such reforms is based" on comparisons of simple summary measures of the Marginal Cost of Funds of the various tariff" or quota changes with the Marginal Cost of Funds of the alternative taxes Benefit of Government supplied goods. The aggregate efficiency of tariff liberalization is" dubious, while quota liberalization is more likely to be efficient. Social welfare rises with" aggregate efficiency unless distribution effects are perverse. Plausible sufficient conditions for" non-perverse distributional effects are provided. The results frame a diagnostic method for" sensitivity analysis in evaluations of trade and tax policies.

JEL-codes: F13 H21 (search for similar items in EconPapers)
Date: 1997-09
Note: ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published as Anderson, J. E. "Trade Reform Diagnostics With Many Households, Quotas, And Tariffs," Review of International Economics, 2002, v10(2,May), 215-236.

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Related works:
Working Paper: Revenue Neutral Trade Reform With Many Households, Quotas and Tariffs (1997)
Working Paper: Revenue Neutral Trade Reform with Many Households, Quotas and Tariffs (1997)
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