Tariffs and Saving in a Model with New Families / Charles Engel, Kenneth Kletzer.

Format:

Book

Author/Creator:

Engel, Charles.

Contributor:

National Bureau of Economic Research.

Kletzer, Kenneth.

Series:

Working Paper Series (National Bureau of Economic Research) no. w2521.

NBER working paper series no. w2521

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1988.

Summary:

The paper explores how a tariff may affect saving through intergenerational redistribution of income that is caused by changes in factor prices and by the distribution of tariff revenue. The model is a Blanchard-type overlapping generations model. Two types of revenue distribution schemes are examined ? lump-sum distribution of current revenues to currently living individuals, and distribution as a subsidy to holders of physical wealth. (There is no fiscal policy in this paper -- the government budget is continuously balanced). We draw some general conclusions about the non-neutralities that arise in this type of model as opposed to single-generation models, or models in which perfect bequest motives exist.

Notes:

Print version record

February 1988.