Revenue Neutral Trade Reform with Many Households, Quotas and Tariffs / James E. Anderson.

Format:

Book

Author/Creator:

Anderson, James E.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w6181.

NBER working paper series no. w6181

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1997.

Summary:

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.

Notes:

Print version record

September 1997.