Trade Restrictiveness and Deadweight Losses from US Tariffs
AbstractThis paper calculates a trade restrictiveness index, i.e., the uniform tariff that yields the same welfare loss as an existing tariff structure, for nearly a century of US data. The results show that the average tariff understates the TRI by about 75 percent. The static deadweight loss from US tariffs is about 1 percent of GDP after the Civil War, but falls almost continuously thereafter to less than one-tenth of 1 percent of GDP. Import duties produced an average welfare loss of 40 cents for every dollar of revenue, slightly higher than contemporary estimates of the marginal cost of taxation. (JEL F13, N71, N72)
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Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Journal: Economic Policy.
Volume (Year): 2 (2010)
Issue (Month): 3 (August)
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- N71 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: Pre-1913
- N72 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: 1913-
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James E. Anderson & J. Peter Neary, 2005. "Measuring the Restrictiveness of International Trade Policy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012200, January.
- Hugh M. Arce & Kenneth A. Reinert, 1994. "Aggregation and the Welfare Analysis of US Tariffs," Journal of Economic Studies, Emerald Group Publishing, vol. 21(6), pages 26-30, October.
- Anderson, Kym & Croser, Johanna L., 2010.
"Novel Indicators of the Trade and Welfare Effects of Agricultural Distortions in OECD Countries,"
CEPR Discussion Papers
7971, C.E.P.R. Discussion Papers.
- Kym Anderson & Johanna Croser, 2011. "Novel indicators of the trade and welfare effects of agricultural distortions in OECD countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 147(2), pages 269-302, June.
- Anderson, Kym & Croser, Johanna, 2010. "Novel indicators of the trade and welfare effects of agricultural distortions in OECD countries," Policy Research Working Paper Series 5404, The World Bank.
- Kym Anderson & Johanna Croser, 2010. "Novel Indicators of the Trade and Welfare Effects of Agricultural Distortions in OECD Countries," Centre for International Economic Studies Working Papers 2010-09, University of Adelaide, Centre for International Economic Studies.
- Trevor Tombe, 2010. "The Missing Food Problem: How Low Agricultural Imports Contribute to International Income and Productivity Differences," Working Papers tecipa-416, University of Toronto, Department of Economics.
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