The mercantilist index of trade policy

James Anderson and J. Peter Neary

No 199813, Working Papers from School of Economics, University College Dublin

Abstract: We introduce an index of trade policy restrictiveness defined as the uniform tariff which maintains the same trade volume as a given tariff/quota structure. Our index overcomes the problems of the trade-weighted average tariff: it avoids substitution bias, correctly accounts for general equilibrium transfers, and takes import volume rather than welfare as benchmark. Empirical applications to international cross-section and time-series comparisons of trade policy confirm our theoretical results: trade-weighted average tariffs generally underestimate the true height of tariffs as measured by the trade-volume-equivalent index; this in turn always underestimates the welfare-equivalent index.

Keywords: Tariffs; Quotas; Trade Restrictiveness Index; Trade liberalisation; International trade policy; International trade; Tariff; Restraint of trade; Commercial policy (search for similar items in EconPapers)
JEL-codes: F13 (search for similar items in EconPapers)
Date: 2001-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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http://hdl.handle.net/10197/1323 First version, 2001 (application/pdf)

Related works:
Journal Article: The Mercantilist Index of Trade Policy (2003)
Working Paper: The Mercantilist Index of Trade Policy (1999)
Working Paper: The Mercantilist Index of Trade Policy (1998)
Working Paper: The Mercantilist Index of Trade Policy (1998)
Working Paper: The Mercantilist Index of Trade Policy (1998)
Working Paper: The mercantilist index of trade policy (1998)
Working Paper: The Mercantilist Index of Trade Policy (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:ucn:wpaper:199813

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