What Do We Know About Tariff Incidence? / Stephen Tokarick.

Format:

Book

Government document

Author/Creator:

Tokarick, Stephen.

Series:

IMF Working Papers; Working Paper ; No. 2004/182

IMF Working Papers

Language:

English

Subjects (All):

Taxation--Econometric models.

Taxation.

Tariff--Econometric models.

Tariff.

Physical Description:

1 online resource (23 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2004.

Language Note:

English

Summary:

This paper examines the question: Who bears the larger portion of the excess burden of a tariff-the country that imposes it, or a country that it trades with? For a country that can influence its terms of trade, there are two ways of approaching this question. This paper shows that under certain assumptions, the extra burden from a marginal change in the homecountry tariff is shared equally between the home and foreign country at a tariff rate equal to twice the optimal tariff for the home country. Also, the cumulative welfare effect of a tariff in the home country, relative to free trade, turns out to be equalized across countries when the home tariff equals four times its optimal tariff. The paper provides an application of these results and points policymakers to the types of data that are relevant if they want to negotiate over "burden sharing.".

Contents:

""Contents""; ""I. INTRODUCTION""; ""II. TARIFF INCIDENCE IN GENERAL EQUILIBRIUM""; ""A. Welfare Effects from a Marginal Change in the Home Tariff""; ""B. Distribution of the Cumulative Welfare Effects of a Tariff""; ""C. Generalizations and Extensions""; ""III. NUMERICAL APPLICATIONS""; ""IV. CONCLUSIONS""; ""REFERENCES""

Notes:

Description based upon print version of record.

Includes bibliographical references.

Description based on online resource; title from PDF cover (ebrary, viewed June 27, 2015).

ISBN:

9786613795809

9781462314539

1462314538

9781452791555

1452791554

9781282010802

1282010808

9781451904659

1451904657