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Welfare versus market access: The implications of tariff structure for tariff reform
Oleh : James E. Anderson, J. Peter Neary, ELSEVIER (james.anderson.1@bc.edu (J.E. Anderson), peter.neary@ucd.ie (J.P. Neary))
Dibuat : 2010-06-24, dengan 1 file
Keyword : Welfare, market, access, implications, tariff, structure, tariff, reform
Url : http://www.elsevier.com/locate/econbase
We show that the effects of tariff changes on welfare and import volume are fully characterised by their
effects on the generalised mean and variance of the tariff distribution, implying two “cones of liberalisation”
in commodity price space. Because welfare is negatively but import volume positively related to the
generalised variance, the cones do not intersect, which poses a policy dilemma. We present a new radial
tariff reform rule, which implies new results for welfare- and market-access-improving tariff changes.
Finally, we show that generalised and trade-weighted moments are mutually proportional when the trade
expenditure function is CES.
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