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Tariff Incidence in America's Gilded Age

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  • Irwin, Douglas A.

Abstract

In the late nineteenth century, the United States imposed high tariffs to protect domestic manufacturers from foreign competition. This article examines the magnitude of protection given to import-competing producers and the costs imposed on export-oriented producers by focusing on changes in the domestic prices of traded goods relative to nontraded goods. The results suggest that the 30 percent average import tariff gave about a 17 percent implicit subsidy to import-competing producers and effectively taxed exporters at about 10 percent. Tariffs redistributed large amounts of income (about 8 percent of GDP), but the effect on consumers was roughly neutral.

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Bibliographic Info

Article provided by Cambridge University Press in its journal The Journal of Economic History.

Volume (Year): 67 (2007)
Issue (Month): 03 (September)
Pages: 582-607

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Handle: RePEc:cup:jechis:v:67:y:2007:i:03:p:582-607_00

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Cited by:
  1. Douglas A. Irwin, 2007. "Trade Restrictiveness and Deadweight Losses from U.S. Tariffs, 1859-1961," NBER Working Papers 13450, National Bureau of Economic Research, Inc.
  2. Bagwell,K. & Staiger,R.W., 2004. "Backward stealing and forward manipulation in the WTO," Working papers 9, Wisconsin Madison - Social Systems.
  3. Kenneth W. Clements & Renee Fry, 2006. "Commodity Currencies And Currency Commodities," CAMA Working Papers 2006-19, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
  4. Harrison, Ann & Rodríguez-Clare, Andrés, 2010. "Trade, Foreign Investment, and Industrial Policy for Developing Countries," Handbook of Development Economics, Elsevier.

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