Welfare versus 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 characterised by their effects on the generalised 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: | , |
|---|---|
| Format: | Working paper |
| Language: | English |
| Published: |
Boston College Department of Economics
2004
|
| _version_ | 1826286618752843776 |
|---|---|
| author | Anderson, J Neary, P |
| author_facet | Anderson, J Neary, P |
| author_sort | Anderson, J |
| collection | OXFORD |
| description | We show that the effects of tariff changes on welfare and import volume can be fully characterised by their effects on the generalised 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 liberalisation" in price space. Because welfare is negatively but import volume positively related to the generalised variance, the cones do not intersect, which poses a dilemma for trade policy reform. Finally, we show that generalised and trade-weighted moments are mutually proportional when the trade expenditure function is CES. |
| first_indexed | 2024-03-07T01:46:25Z |
| format | Working paper |
| id | oxford-uuid:9892f45a-5dd8-4b6f-b684-087cbf8c881d |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T01:46:25Z |
| publishDate | 2004 |
| publisher | Boston College Department of Economics |
| record_format | dspace |
| spelling | oxford-uuid:9892f45a-5dd8-4b6f-b684-087cbf8c881d2022-03-27T00:07:56ZWelfare versus Market Access: The Implications of Tariff Structure for Tariff Reform.Working paperhttp://purl.org/coar/resource_type/c_8042uuid:9892f45a-5dd8-4b6f-b684-087cbf8c881dEnglishDepartment of Economics - ePrintsBoston College Department of Economics2004Anderson, JNeary, PWe show that the effects of tariff changes on welfare and import volume can be fully characterised by their effects on the generalised 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 liberalisation" in price space. Because welfare is negatively but import volume positively related to the generalised variance, the cones do not intersect, which poses a dilemma for trade policy reform. Finally, we show that generalised and trade-weighted moments are mutually proportional when the trade expenditure function is CES. |
| spellingShingle | Anderson, J Neary, P Welfare versus Market Access: The Implications of Tariff Structure for Tariff Reform. |
| title | Welfare versus Market Access: The Implications of Tariff Structure for Tariff Reform. |
| title_full | Welfare versus Market Access: The Implications of Tariff Structure for Tariff Reform. |
| title_fullStr | Welfare versus Market Access: The Implications of Tariff Structure for Tariff Reform. |
| title_full_unstemmed | Welfare versus Market Access: The Implications of Tariff Structure for Tariff Reform. |
| title_short | Welfare versus Market Access: The Implications of Tariff Structure for Tariff Reform. |
| title_sort | welfare versus market access the implications of tariff structure for tariff reform |
| work_keys_str_mv | AT andersonj welfareversusmarketaccesstheimplicationsoftariffstructurefortariffreform AT nearyp welfareversusmarketaccesstheimplicationsoftariffstructurefortariffreform |