Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Optimal Tax on Antebellum U.S. Cotton Exports

Contents:

Author Info

  • Douglas A. Irwin

Abstract

The United States produced about 80 percent of the world's cotton in the decades prior to the Civil War. How much monopoly power did the United States possess in the world cotton market and what would have been the effect of an optimal export tax? This paper estimates the elasticity of foreign demand for U.S. cotton exports and uses the elasticity in a simple partial equilibrium model to calculate the optimal export tax and its effect on prices, trade, and welfare. The results indicate that the export demand elasticity for U.S. cotton was about -1.7 and that the optimal export tax of about 50 percent would have raised U.S. welfare by about $6 million, about 0.1 percent of U.S. GDP or about 0.5 percent of the South's GDP.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.nber.org/papers/w8689.pdf
Download Restriction: no

Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 8689.

as in new window
Length:
Date of creation: Dec 2001
Date of revision:
Publication status: published as Irwin, Douglas A., 2003. "The optimal tax on antebellum US cotton exports," Journal of International Economics, Elsevier, vol. 60(2), pages 275-291, August.
Handle: RePEc:nbr:nberwo:8689

Note: DAE ITI
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Phone: 617-868-3900
Email:
Web page: http://www.nber.org
More information through EDIRC

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. James, John A., 1978. "The welfare effects of the antebellum tariff: A general equilibrium analysis," Explorations in Economic History, Elsevier, Elsevier, vol. 15(3), pages 231-256, July.
  2. Duffy, Patricia A. & Shalishali, Kasazi & Kinnucan, Henry W., 1994. "Acreage Response Under Farm Programs For Major Southeastern Field Crops," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(02), December.
  3. Harley, C.K., 1991. "The Antebellum American Tariff : Food Exports and Manufacturing," UWO Department of Economics Working Papers, University of Western Ontario, Department of Economics 9105, University of Western Ontario, Department of Economics.
  4. James, John A, 1981. "The Optimal Tariff in the Antebellum United States," American Economic Review, American Economic Association, vol. 71(4), pages 726-34, September.
  5. Brown, Drusilla K., 1987. "Tariffs, the terms of trade, and national product differentiation," Journal of Policy Modeling, Elsevier, Elsevier, vol. 9(3), pages 503-526.
  6. Wahl, Thomas I. & Hayes, Dermot J., 1990. "Demand System Estimation with Upward-Sloping Supply," Staff General Research Papers 292, Iowa State University, Department of Economics.
  7. David G. Surdam, 1998. "King Cotton: Monarch or Pretender? The State of the Market for Raw Cotton on the Eve of the American Civil War," Economic History Review, Economic History Society, Economic History Society, vol. 51(1), pages 113-132, 02.
  8. Shah, Shekhar & Mishra, Deepak & Panagariya, Arvind, 1996. "Demand elasticities in international trade : are they really low?," Policy Research Working Paper Series 1712, The World Bank.
  9. Lloyd A. Metzler, 1949. "Tariffs, the Terms of Trade, and the Distribution of National Income," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 57, pages 1.
  10. Van Duyne, Carl, 1975. "Commodity Cartels and the Theory of Derived Demand," Kyklos, Wiley Blackwell, vol. 28(3), pages 597-612.
  11. Huertas, Thomas F., 1979. "Damnifying Growth in the Antebellum South," The Journal of Economic History, Cambridge University Press, vol. 39(01), pages 87-100, March.
  12. Alston, Julian M & Foster, Kenneth A & Green, Richard D, 1994. "Estimating Elasticities with the Linear Approximate Almost Ideal Demand System: Some Monte Carlo Results," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 351-56, May.
  13. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  14. Wright, Gavin, 1971. "An Econometric Study of Cotton Production and Trade, 1830-1860," The Review of Economics and Statistics, MIT Press, vol. 53(2), pages 111-20, May.
  15. Wright, Gavin, 1974. "Cotton Competition and the Post-Bellum Recovery of the American South," The Journal of Economic History, Cambridge University Press, vol. 34(03), pages 610-635, September.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. León, Sonia M. & Roitman, Mauricio E. & Romero, Carlos A., 2009. "Evaluación de los efectos de la remoción de medidas para-arancelarias sobre las exportaciones argentinas de productos textiles
    [Assessing the efects of eliminating non-tariff barriers over the Arge
    ," MPRA Paper 17898, University Library of Munich, Germany.
  2. Joseph Davis & Vanguard Group; Christopher Hanes, 2004. "Primary Sector Shocks and Early American Industrialization," 2004 Meeting Papers 154, Society for Economic Dynamics.
  3. Marc D. Weidenmier & Kim Oosterlinck, 2007. "Victory or Repudiation? The Probability of the Southern Confederacy Winning the Civil War," NBER Working Papers 13567, National Bureau of Economic Research, Inc.
  4. Weidenmier, Marc D., 2005. "Gunboats, reputation, and sovereign repayment: lessons from the Southern Confederacy," Journal of International Economics, Elsevier, vol. 66(2), pages 407-422, July.
  5. Fraser, Iain & Waschik, Robert, 2006. "A Computable General Equilibrium Analysis of Export Taxes in the Australian Wool Industry," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 139733, Australian Agricultural and Resource Economics Society.
  6. Marc Weidenmier, 2004. "Gunboats, Reputation, and Sovereign Repayment: Lessons from the Southern Confederacy," NBER Working Papers 10960, National Bureau of Economic Research, Inc.
  7. Robert Allen, 2013. "American Exceptionalism as a Problem in Global History," Economics Series Working Papers 689, University of Oxford, Department of Economics.
  8. Burger, Kees, 2008. "Optimal export taxes – the case of cocoa in Cote d'Ivoire," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6395, European Association of Agricultural Economists.
  9. Marcelo de Paiva Abreu & Felipe Tamega Fernandes, 2005. "Market Power and Commodity Prices: Brazil, Chile and the United States, 1820s-1930," Textos para discussão 511, Department of Economics PUC-Rio (Brazil).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:8689. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.