Tariffs and the Current Account: The Role of Initial Distortions
AbstractFrom an initial position of laissez-faire, temporary tariffs have been shown to improve the current account. However, if tariffs are initially positive (as in many actual economies), temporary tariffs will magnify an existing distortion and therefore lower real income during protectionist periods. Optimizing agents may wish to smooth the path of consumption relative to income by foreign borrowing. If the intertemporal elasticity of substitution is sufficiently low, temporary tariffs may actually worsen the current account.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 23 (1990)
Issue (Month): 2 (May)
Contact details of provider:
Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
Web page: http://economics.ca/cje/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Ikeda & S., 2000.
"Tariffs, Time Preference, and the Current Account under Weakly Nonseparable Preferences,"
ISER Discussion Paper
0519, Institute of Social and Economic Research, Osaka University.
- Shinsuke Ikeda, 2003. "Tariffs, Time Preference, and the Current Account under Weakly Nonseparable Preferences," Review of International Economics, Wiley Blackwell, vol. 11(1), pages 101-113, February.
- Mansoorian, Arman & Mohsin, Mohammed, 2010. "On the employment, investment, and current account effects of trade liberalizations with durability in consumption," The North American Journal of Economics and Finance, Elsevier, vol. 21(3), pages 228-240, December.
- Lone Christiansen & Alessandro Prati & Luca Antonio Ricci & Thierry Tressel, 2010.
"External Balance in Low-Income Countries,"
in: NBER International Seminar on Macroeconomics 2009, pages 265-322
National Bureau of Economic Research, Inc.
- Arman Mansoorian & Simon Neaime, 1996. "Habits and Durability in Consumption, and the Effects of Tariff Protection," Working Papers 1996_02, York University, Department of Economics.
- Arman Mansoorian & Simon Neaime, 2000. "Habits and Durability in Consumption, and the Effects of Tariff Protection," Open Economies Review, Springer, vol. 11(3), pages 195-204, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Werner Antweiler).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.