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Welfare versus market access : the implications of tariff structure for tariff reform
Author(s)
Date Issued
2004-09
Date Available
2009-07-21T16:21:18Z
Abstract
We show that the effects of tariff changes on welfare and import volume can be fully
characterised by their effects on the generalised mean and variance of the tariff distribution. Using these tools, we derive new results for welfare- and market-access-improving tariff changes, which imply two "cones of liberalisation" in price space. Because welfare is negatively but
import volume positively related to the generalised variance, the cones do not intersect, which poses a dilemma for trade policy reform. Finally, we show that generalised and trade-weighted moments are mutually proportional when the trade expenditure function is CES.
Type of Material
Working Paper
Publisher
University College Dublin. School of Economics
Series
UCD Centre for Economic Research Working Paper Series
WP04/23
Classification
F13
F15
Subject – LCSH
Commercial policy
International economic integration
Tariff
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
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