Second Best Redistributive Policies: The Case of International Trade
AbstractThe 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 InfoArticle provided by Association for Public Economic Theory in its journal Journal of Public Economic Theory.
Volume (Year): 3 (2001)
Issue (Month): 1 ()
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- Guesnerie, R., 2000. "Second Best Redistributive Policies : the Case of International Trade," DELTA Working Papers, DELTA (Ecole normale supÃ©rieure) 2000-21, DELTA (Ecole normale supérieure).
- F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- F10 - International Economics - - Trade - - - General
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