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Services and income redistribution in specific factors models of the Trans-Pacific Partnership

In: The Trans-Pacific Partnership and the Path to Free Trade in the Asia-Pacific

Author

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  • Henry Thompson

Abstract

The author applies a specific factors model to analyze the potential income redistribution inside Trans-Pacific partnership (TPP) countries due to increased trade and the changing prices of services, finding that there is a substantial income redistribution between three labor skill groups and industrial capital in the simulations. He argues that tax policies should anticipate rather than react to the pending income redistribution inside the TPP.

Suggested Citation

  • Henry Thompson, 2016. "Services and income redistribution in specific factors models of the Trans-Pacific Partnership," Chapters, in: Peter C.Y. Chow (ed.), The Trans-Pacific Partnership and the Path to Free Trade in the Asia-Pacific, chapter 10, pages 250-265, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:16671_10
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