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Second Best Redistributive Policies: The Case of International Trade

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  • Guesnerie, Roger

Abstract

The paper presents a brief review of recent work that focuses on the normative economics of international trade. In a Heckscher-Ohlin-like economy, with skilled and unskilled workers, the available redistributive tools (that include income taxation) are not powerful enough to allow the separation of efficiency and equity issues, and "production efficiency" is no longer desirable. At a social optimum that calls for redistribution toward the unskilled workers, the social value of the unskilled intensive good is necessarily smaller than its production price. This finding allows us to unify existing results and suggests conjectures. Copyright 2001 by Blackwell Publishing Inc.

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Bibliographic Info

Article provided by Association for Public Economic Theory in its journal Journal of Public Economic Theory.

Volume (Year): 3 (2001)
Issue (Month): 1 ()
Pages: 15-25

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Handle: RePEc:bla:jpbect:v:3:y:2001:i:1:p:15-25

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Cited by:
  1. Hisahiro Naito, 2006. "Redistribution, production inefficiency and decentralized efficiency," International Tax and Public Finance, Springer, Springer, vol. 13(5), pages 625-640, September.
  2. Christian Keuschnigg & Evelyn Ribi, 2008. "Outsourcing, Unemployment and Welfare Policy," CESifo Working Paper Series 2452, CESifo Group Munich.
  3. Guillaume Daudin & Jean-Luc Gaffard & Francesco Saraceno, 2007. "Ordre et désordre dans l'échange international : une revue de littérature," Sciences Po publications info:hdl:2441/3201, Sciences Po.
  4. Roger Guesnerie, 2006. "De l'utilité du calcul économique public," Économie et Prévision, Programme National Persée, Programme National Persée, vol. 175(4), pages 1-14.
  5. Davidson, Carl & Matusz, Steven J. & Nelson, Douglas R., 2007. "Can compensation save free trade?," Journal of International Economics, Elsevier, Elsevier, vol. 71(1), pages 167-186, March.
  6. Martimort, David & Verdier, Thierry, 2009. "International Trade with Domestic Regulation under Asymmetric Information: A Simple General Equilibrium Approach," IDEI Working Papers, Institut d'Économie Industrielle (IDEI), Toulouse 223, Institut d'Économie Industrielle (IDEI), Toulouse, revised Jan 2010.
  7. repec:spo:wpecon:info:hdl:2441/3201 is not listed on IDEAS

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