The mercantilist index of trade policy
We introduce an index of trade policy restrictiveness defined as the uniform tariff that 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 t...
| Main Authors: | , |
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| Format: | Journal article |
| Language: | English |
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Blackwell Publishing
2003
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| Subjects: |
| _version_ | 1826277811270189056 |
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| author | Anderson, J Neary, J |
| author_facet | Anderson, J Neary, J |
| author_sort | Anderson, J |
| collection | OXFORD |
| description | We introduce an index of trade policy restrictiveness defined as the uniform tariff that 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 instead of 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. |
| first_indexed | 2024-03-06T23:34:31Z |
| format | Journal article |
| id | oxford-uuid:6d311355-6981-4908-bb32-b667043cc2fb |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T23:34:31Z |
| publishDate | 2003 |
| publisher | Blackwell Publishing |
| record_format | dspace |
| spelling | oxford-uuid:6d311355-6981-4908-bb32-b667043cc2fb2022-03-26T19:16:13ZThe mercantilist index of trade policyJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:6d311355-6981-4908-bb32-b667043cc2fbEconomicsEnglishOxford University Research Archive - ValetBlackwell Publishing2003Anderson, JNeary, JWe introduce an index of trade policy restrictiveness defined as the uniform tariff that 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 instead of 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. |
| spellingShingle | Economics Anderson, J Neary, J The mercantilist index of trade policy |
| title | The mercantilist index of trade policy |
| title_full | The mercantilist index of trade policy |
| title_fullStr | The mercantilist index of trade policy |
| title_full_unstemmed | The mercantilist index of trade policy |
| title_short | The mercantilist index of trade policy |
| title_sort | mercantilist index of trade policy |
| topic | Economics |
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