A Factor Tariff, Domestic Supply, and Income
AbstractA factor tariff raises the cost of production and reduces output in a small open neoclassical economy. In the present model the tariff also raises the price of the import competing factor, increasing its quantity supplied. Factor substitution, factor shares, and the price elasticity of factor supply determine adjustments to a factor tariff. Under some conditions, the tariff raises income. The model relates to economic growth and macroeconomic theory with an imported factor of production.
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Bibliographic InfoPaper provided by Department of Economics, Auburn University in its series Auburn Economics Working Paper Series with number auwp2013-12.
Date of creation: Aug 2013
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More information through EDIRC
Energy Tariffs; Factor Tariffs; General Equilibrium;
Find related papers by JEL classification:
- F11 - International Economics - - Trade - - - Neoclassical Models of Trade
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-06 (All new papers)
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NBER Working Papers
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