The mercantilist index of trade policy
|Title:||The mercantilist index of trade policy||Authors:||Anderson, James E.
Neary, J. Peter
|Permanent link:||http://hdl.handle.net/10197/1323||Date:||11-Jul-2001||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.||Funding Details:||OECD ; Economic and Social Research Council (ESRC)||Type of material:||Working Paper||Publisher:||University College Dublin. School of Economics||Keywords:||Tariffs;Quotas;Trade Restrictiveness Index;Trade liberalisation;International trade policy||Subject LCSH:||International trade
Restraint of trade
|Language:||en||Status of Item:||Not peer reviewed|
|Appears in Collections:||Economics Working Papers & Policy Papers|
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