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)
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.:
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"Factor Trade and Goods Trade,"
NBER Working Papers
0999, National Bureau of Economic Research, Inc.
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