Advanced Search
MyIDEAS: Login to save this article or follow this journal

The optimal tax on antebellum US cotton exports

Contents:

Author Info

  • Irwin, Douglas A.

Abstract

The United States produced about 80 percent of the world's cotton in the decades prior to the Civil War. How much monopoly power did the United States possess in the world cotton market and what would have been the effect of an optimal export tax? This paper estimates the elasticity of foreign demand for U.S. cotton exports and uses the elasticity in a simple partial equilibrium model to calculate the optimal export tax and its effect on prices, trade, and welfare. The results indicate that the export demand elasticity for U.S. cotton was about -1.7 and that the optimal export tax of about 50 percent would have raised U.S. welfare by about $6 million, about 0.1 percent of U.S. GDP or about 0.5 percent of the South's GDP.

(This abstract was borrowed from another version of this item.)

Download Info

If 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.
File URL: http://www.sciencedirect.com/science/article/B6V6D-46THTV9-5/2/0c8c726491294e66ed7535a1d0a3fd5f
Download Restriction: Full text for ScienceDirect subscribers only

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 Info

Article provided by Elsevier in its journal Journal of International Economics.

Volume (Year): 60 (2003)
Issue (Month): 2 (August)
Pages: 275-291

as in new window
Handle: RePEc:eee:inecon:v:60:y:2003:i:2:p:275-291

Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505552

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
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.:
as in new window
  1. Van Duyne, Carl, 1975. "Commodity Cartels and the Theory of Derived Demand," Kyklos, Wiley Blackwell, vol. 28(3), pages 597-612.
  2. Harley, C. Knick, 1992. "The antebellum American tariff: Food exports and manufacturing," Explorations in Economic History, Elsevier, vol. 29(4), pages 375-400, October.
  3. Panagariya, Arvind & Shah, Shekhar & Mishra, Deepak, 2001. "Demand elasticities in international trade: are they really low?," Journal of Development Economics, Elsevier, vol. 64(2), pages 313-342, April.
  4. Wahl, Thomas I. & Hayes, Dermot J., 1990. "Demand System Estimation with Upward-Sloping Supply," Staff General Research Papers 292, Iowa State University, Department of Economics.
  5. David G. Surdam, 1998. "King Cotton: Monarch or Pretender? The State of the Market for Raw Cotton on the Eve of the American Civil War," Economic History Review, Economic History Society, vol. 51(1), pages 113-132, 02.
  6. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  7. James, John A., 1978. "The welfare effects of the antebellum tariff: A general equilibrium analysis," Explorations in Economic History, Elsevier, vol. 15(3), pages 231-256, July.
  8. Brown, Drusilla K., 1987. "Tariffs, the terms of trade, and national product differentiation," Journal of Policy Modeling, Elsevier, vol. 9(3), pages 503-526.
  9. Wright, Gavin, 1971. "An Econometric Study of Cotton Production and Trade, 1830-1860," The Review of Economics and Statistics, MIT Press, vol. 53(2), pages 111-20, May.
  10. Lloyd A. Metzler, 1949. "Tariffs, the Terms of Trade, and the Distribution of National Income," Journal of Political Economy, University of Chicago Press, vol. 57, pages 1.
  11. Wright, Gavin, 1974. "Cotton Competition and the Post-Bellum Recovery of the American South," The Journal of Economic History, Cambridge University Press, vol. 34(03), pages 610-635, September.
  12. Duffy, Patricia A. & Shalishali, Kasazi & Kinnucan, Henry W., 1994. "Acreage Response Under Farm Programs For Major Southeastern Field Crops," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(02), December.
  13. Huertas, Thomas F., 1979. "Damnifying Growth in the Antebellum South," The Journal of Economic History, Cambridge University Press, vol. 39(01), pages 87-100, March.
  14. James, John A, 1981. "The Optimal Tariff in the Antebellum United States," American Economic Review, American Economic Association, vol. 71(4), pages 726-34, September.
  15. Alston, Julian M & Foster, Kenneth A & Green, Richard D, 1994. "Estimating Elasticities with the Linear Approximate Almost Ideal Demand System: Some Monte Carlo Results," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 351-56, May.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Waschik, Robert & Fraser, Iain, 2007. "A computable general equilibrium analysis of export taxes in the Australian wool industry," Economic Modelling, Elsevier, vol. 24(4), pages 712-736, July.
  2. Marc D. Weidenmier & Kim Oosterlinck, 2007. "Victory or Repudiation? The Probability of the Southern Confederacy Winning the Civil War," NBER Working Papers 13567, National Bureau of Economic Research, Inc.
  3. Marc Weidenmier, 2004. "Gunboats, Reputation, and Sovereign Repayment: Lessons from the Southern Confederacy," NBER Working Papers 10960, National Bureau of Economic Research, Inc.
  4. Burger, Kees, 2008. "Optimal export taxes – the case of cocoa in Cote d'Ivoire," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6395, European Association of Agricultural Economists.
  5. Marcelo de Paiva Abreu & Felipe Tamega Fernandes, 2005. "Market Power and Commodity Prices: Brazil, Chile and the United States, 1820s-1930," Textos para discussão 511, Department of Economics PUC-Rio (Brazil).
  6. Joseph Davis & Vanguard Group; Christopher Hanes, 2004. "Primary Sector Shocks and Early American Industrialization," 2004 Meeting Papers 154, Society for Economic Dynamics.
  7. Weidenmier, Marc D., 2005. "Gunboats, reputation, and sovereign repayment: lessons from the Southern Confederacy," Journal of International Economics, Elsevier, vol. 66(2), pages 407-422, July.
  8. Robert Allen, 2013. "American Exceptionalism as a Problem in Global History," Economics Series Working Papers 689, University of Oxford, Department of Economics.
  9. León, Sonia M. & Roitman, Mauricio E. & Romero, Carlos A., 2009. "Evaluación de los efectos de la remoción de medidas para-arancelarias sobre las exportaciones argentinas de productos textiles
    [Assessing the efects of eliminating non-tariff barriers over the Ar
    ," MPRA Paper 17898, University Library of Munich, Germany.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:inecon:v:60:y:2003:i:2:p:275-291. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

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.