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Tariff Reform in a Small Open Multi-household Economy with Domestic Distortions and Nontraded Goods

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Author Info

  • Diewert, W E
  • Turunen-Red, A H
  • Woodland, A D

Abstract

The authors examine tariff reforms in the context of a small open economy and simultaneously deal with three extensions of the current literature: nonremovable domestic tax distortions, nontraded goods, and many households. Using the new concepts of a constant-utility, tax-adjusted, balance-of-trade function and a constant-utility productivity improvement in tariffs, necessary and sufficient conditions for the existence of strict Pareto improving tariff and transfer reforms are established. The authors also consider directional tariff and transfer reforms such as movements toward the world price vector, proportional reductions, and reductions of extreme tariffs. Also discussed is the role of normality of household preferences. Copyright 1991 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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Bibliographic Info

Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

Volume (Year): 32 (1991)
Issue (Month): 4 (November)
Pages: 937-57

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Handle: RePEc:ier:iecrev:v:32:y:1991:i:4:p:937-57

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Cited by:
  1. Pascalis Raimondos-Møller & Alan D. Woodland, 2006. "Steepest Ascent Tariff Reforms," CESifo Working Paper Series 1760, CESifo Group Munich.
  2. Kreickemeier, Udo & Raimondos-Møller, Pascalis, 2006. "Tariff-Tax Reforms and Market Access," Working Papers 06-2006, Copenhagen Business School, Department of Economics.
  3. Kreickemeier, Udo & Raimondos-Møller, Pascalis, 2006. "Concertina Reforms with International Capital Mobility," CEPR Discussion Papers 5888, C.E.P.R. Discussion Papers.
  4. Harris, Richard G. & Schmitt, Nicolas, 2001. "Strategic export policy with foreign direct investment and import substitution," Journal of Development Economics, Elsevier, vol. 64(1), pages 293-312, February.

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