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Tax Britannica: Nineteenth Century Tariffs and British National Income

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Author Info
Sami Dakhlia ()
John Nye ()

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Abstract

The literature on British economic history presumes thatBritain was a free trader after the repeal of the Corn Lawsand that her tariff levels were thus below those which wereoptimal for maximizing utility. Presumably, if the optimalBritish tariffs had been positive and greater than the levelsestablished by mid-century, a reduction to zero of all tariffsthat remained would have lowered British welfare even further.In this paper, we use a simple computable general equilibriummodel to simulate a drop in all British tariffs to zero. Theresulting substantial net increase in British welfaresuggests that British tariffs were much higher than would beconsistent with an optimum tariff policy. More important, thesize of British losses from her high tariff levels suggeststhat British policy was not consistent with the stance of anideological free trader. Copyright Kluwer Academic Publishers 2004

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File URL: http://hdl.handle.net/10.1007/s11127-004-1680-4
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Publisher Info
Article provided by Springer in its journal Public Choice.

Volume (Year): 121 (2004)
Issue (Month): 3 (February)
Pages: 309-333
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Handle: RePEc:kap:pubcho:v:121:y:2004:i:3:p:309-333

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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.:

  1. Nye, John Vincent, 1991. "The Myth of Free-Trade Britain and Fortress France: Tariffs and Trade in the Nineteenth Century," The Journal of Economic History, Cambridge University Press, vol. 51(01), pages 23-46, March. [Downloadable!]
  2. Mercenier, Jean & Yeldan, Erinc, 1999. "A Plea For Greater Attention on the Data in Policy Analysis," Journal of Policy Modeling, Elsevier, vol. 21(7), pages 851-873, December. [Downloadable!] (restricted)
  3. Irwin, Douglas A., 1993. "Free Trade and Protection in Nineteenth-Century Britain and France Revisited: A Comment on Nye," The Journal of Economic History, Cambridge University Press, vol. 53(01), pages 146-152, March. [Downloadable!]
  4. J Anderson & J.P. Neary, 1994. "Measuring the Restrictiveness of Trade Policy," CEP Discussion Papers dp0186, Centre for Economic Performance, LSE.
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  5. James Anderson, 1995. "Trade Restrictiveness Benchmarks," Boston College Working Papers in Economics 290., Boston College Department of Economics. [Downloadable!]
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  6. O'Rourke, Kevin H., 1997. "Measuring protection: a cautionary tale," Journal of Development Economics, Elsevier, vol. 53(1), pages 169-183, June. [Downloadable!] (restricted)
  7. McCloskey, Donald N., 1980. "Magnanimous albion: Free trade and British national income, 1841-1881," Explorations in Economic History, Elsevier, vol. 17(3), pages 303-320, July. [Downloadable!] (restricted)
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  1. Nye, John V.C., 2009. "Political Economy of Anglo-French Trade, 1689-1899:Agricultural Trade Policies, Alcohol Taxes and War," Agricultural Distortions Working Paper 50295, World Bank. [Downloadable!]
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This page was last updated on 2009-12-22.

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