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Border Price Changes and Domestic Welfare in the Presence of Distortions: A Comment

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  • Alston, Julian M
  • Martin, Will

Abstract

The welfare impacts of border price changes in the presence of distortions are always equal to the undistorted welfare impacts plus the induced change in the social costs of the pre-existing distortions. The results of Tyers and Falvey--in which welfare impacts of border price changes are determined by the direction of trade in the absence of the distortion and on the degree of price transmission--can be seen as special cases, conditional on the nature of the policy distortion and the functional form of the underlying relationship. Copyright 1995 by Royal Economic Society.

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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 47 (1995)
Issue (Month): 1 (January)
Pages: 79-82

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Handle: RePEc:oup:oxecpp:v:47:y:1995:i:1:p:79-82

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Cited by:
  1. James E. Anderson, 1997. "The Uruguay Round and Welfare in Some Distorted Agricultural Economies," Boston College Working Papers in Economics 360, Boston College Department of Economics.

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