Sufficient statistics for tariff reform when revenue matters
What kinds of tariff reform are likely to raise welfare in situations where tariff revenue is important? General conditions for welfare to rise without reducing tariff revenue are opaque. We show that they can be greatly simplified using a small number of sufficient statistics, primarily the general...
| Main Authors: | , |
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| Format: | Journal article |
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Elsevier
2015
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| _version_ | 1797050621066477568 |
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| author | Anderson, J Neary, P |
| author_facet | Anderson, J Neary, P |
| author_sort | Anderson, J |
| collection | OXFORD |
| description | What kinds of tariff reform are likely to raise welfare in situations where tariff revenue is important? General conditions for welfare to rise without reducing tariff revenue are opaque. We show that they can be greatly simplified using a small number of sufficient statistics, primarily the generalized mean and variance of tariffs. We present sufficient conditions for a class of linear tariff reform rules that guarantee higher welfare without a loss in revenue. The rules consist of convex combinations of (i) trade-weighted-average-tariff-preserving cuts in dispersion; and (ii) uniform tariff cuts that preserve domestic relative prices among tariff-ridden goods. |
| first_indexed | 2024-03-06T18:07:52Z |
| format | Journal article |
| id | oxford-uuid:0209d43a-bedd-4703-82b2-2b0ef4e740fa |
| institution | University of Oxford |
| last_indexed | 2024-03-06T18:07:52Z |
| publishDate | 2015 |
| publisher | Elsevier |
| record_format | dspace |
| spelling | oxford-uuid:0209d43a-bedd-4703-82b2-2b0ef4e740fa2022-03-26T08:38:18ZSufficient statistics for tariff reform when revenue mattersJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:0209d43a-bedd-4703-82b2-2b0ef4e740faSymplectic Elements at OxfordElsevier2015Anderson, JNeary, PWhat kinds of tariff reform are likely to raise welfare in situations where tariff revenue is important? General conditions for welfare to rise without reducing tariff revenue are opaque. We show that they can be greatly simplified using a small number of sufficient statistics, primarily the generalized mean and variance of tariffs. We present sufficient conditions for a class of linear tariff reform rules that guarantee higher welfare without a loss in revenue. The rules consist of convex combinations of (i) trade-weighted-average-tariff-preserving cuts in dispersion; and (ii) uniform tariff cuts that preserve domestic relative prices among tariff-ridden goods. |
| spellingShingle | Anderson, J Neary, P Sufficient statistics for tariff reform when revenue matters |
| title | Sufficient statistics for tariff reform when revenue matters |
| title_full | Sufficient statistics for tariff reform when revenue matters |
| title_fullStr | Sufficient statistics for tariff reform when revenue matters |
| title_full_unstemmed | Sufficient statistics for tariff reform when revenue matters |
| title_short | Sufficient statistics for tariff reform when revenue matters |
| title_sort | sufficient statistics for tariff reform when revenue matters |
| work_keys_str_mv | AT andersonj sufficientstatisticsfortariffreformwhenrevenuematters AT nearyp sufficientstatisticsfortariffreformwhenrevenuematters |