Welfare vs. Market Access: The Implications of Tariff Structure for Tariff Reform.
We show that the effects of tariff changes on welfare and import volume can be fully characterized by their effects on the generalized 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 '...
| Main Authors: | , |
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| Format: | Working paper |
| Language: | English |
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National Bureau of Economic Research, Inc
2004
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| _version_ | 1826262738516574208 |
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| author | Anderson, J Neary, J |
| author_facet | Anderson, J Neary, J |
| author_sort | Anderson, J |
| collection | OXFORD |
| description | We show that the effects of tariff changes on welfare and import volume can be fully characterized by their effects on the generalized 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 liberalization' in price space. Because welfare is negatively but import volume positively related to the generalized variance, the cones do not intersect, which poses a dilemma for trade policy reform. Finally, we show that generalized and trade-weighted moments are mutually proportional when the trade expenditure function is CES. |
| first_indexed | 2024-03-06T19:40:50Z |
| format | Working paper |
| id | oxford-uuid:209d9abf-345f-468c-b51a-508eb2ba48df |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T19:40:50Z |
| publishDate | 2004 |
| publisher | National Bureau of Economic Research, Inc |
| record_format | dspace |
| spelling | oxford-uuid:209d9abf-345f-468c-b51a-508eb2ba48df2022-03-26T11:28:34ZWelfare vs. Market Access: The Implications of Tariff Structure for Tariff Reform.Working paperhttp://purl.org/coar/resource_type/c_8042uuid:209d9abf-345f-468c-b51a-508eb2ba48dfEnglishDepartment of Economics - ePrintsNational Bureau of Economic Research, Inc2004Anderson, JNeary, JWe show that the effects of tariff changes on welfare and import volume can be fully characterized by their effects on the generalized 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 liberalization' in price space. Because welfare is negatively but import volume positively related to the generalized variance, the cones do not intersect, which poses a dilemma for trade policy reform. Finally, we show that generalized and trade-weighted moments are mutually proportional when the trade expenditure function is CES. |
| spellingShingle | Anderson, J Neary, J Welfare vs. Market Access: The Implications of Tariff Structure for Tariff Reform. |
| title | Welfare vs. Market Access: The Implications of Tariff Structure for Tariff Reform. |
| title_full | Welfare vs. Market Access: The Implications of Tariff Structure for Tariff Reform. |
| title_fullStr | Welfare vs. Market Access: The Implications of Tariff Structure for Tariff Reform. |
| title_full_unstemmed | Welfare vs. Market Access: The Implications of Tariff Structure for Tariff Reform. |
| title_short | Welfare vs. Market Access: The Implications of Tariff Structure for Tariff Reform. |
| title_sort | welfare vs market access the implications of tariff structure for tariff reform |
| work_keys_str_mv | AT andersonj welfarevsmarketaccesstheimplicationsoftariffstructurefortariffreform AT nearyj welfarevsmarketaccesstheimplicationsoftariffstructurefortariffreform |