Revenue Tariff Reform
AbstractWhat kind of tariff reform is likely to raise welfare in situations where tariff revenue is important?� Uncertainty about specification and risk from imprecise parameter estimates of any particular specification reduce the credibility of simulation estimates.� A promising alternative is to develop rules which are robust with respect to such uncertainty.� We present sufficient conditions for a class of linear rule that guarantee welfare-improving tariff reform.� The rules span cones of welfare-improving tariff reforms consisting of convex combinations of (i) trade-weighted-average-tariff-preserving dispersion cuts; and (ii) uniform tariff cuts that preserve domestic relative prices among tariff-ridden goods.
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 688.
Date of creation: 13 Dec 2013
Date of revision:
Trade policy reform; Generalized mean and variance of tariffs; Tariff revenue; Piecemeal policy reform;
Other versions of this item:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-12-15 (All new papers)
- NEP-INT-2013-12-15 (International Trade)
- NEP-MAC-2013-12-15 (Macroeconomics)
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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IMF Working Papers
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