IDEAS home Printed from https://ideas.repec.org/a/ecj/econjl/v105y1995i432p1180-1204.html
   My bibliography  Save this article

Limits to the Potential Gains from Economic Integration and Other Supply Side Policies

Author

Listed:
  • Hammond, Peter J
  • Sempere, Jaime

Abstract

Classical welfare economics demonstrates potential Pareto improvements from 'supply side' policy changes that increase the efficiency of aggregate production. Special cases reviewed here concern market integration through customs unions and the gains from international trade. These classical results require incentive incompatible lump-sum transfers. Generally, other policies must compensate deserving losers. Following A. Dixit and V. Norman, the authors consider a freeze of consumer posttax prices, wages, and dividends, with tax rates and producer prices left to clear markets. Actual Pareto improvements are then generated by uniform poll subsidies. With appropriately distributed external tariff revenue, neither international transfers nor free disposal are required. Copyright 1995 by Royal Economic Society.

Suggested Citation

  • Hammond, Peter J & Sempere, Jaime, 1995. "Limits to the Potential Gains from Economic Integration and Other Supply Side Policies," Economic Journal, Royal Economic Society, vol. 105(432), pages 1180-1204, September.
  • Handle: RePEc:ecj:econjl:v:105:y:1995:i:432:p:1180-1204
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0013-0133%28199509%29105%3A432%3C1180%3ALTTPGF%3E2.0.CO%3B2-R&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Reinhorn, Leslie J., 2013. "Production efficiency and excess supply," Mathematical Social Sciences, Elsevier, vol. 65(2), pages 92-100.
    2. Kemp, Murray & Wan, Henry, Jr., 2003. "Lumpsum versus Non-lumpsum Redistribution: A Second Glance," Working Papers 03-02, Cornell University, Center for Analytic Economics.
    3. Facchini, Giovanni & Willmann, Gerald, 1999. "The gains from duty free zones," Journal of International Economics, Elsevier, vol. 49(2), pages 403-412, December.
    4. Harrison, Glenn W. & Rutherford, Thomas F. & Tarr, David G., 1997. "Trade policy options for Chile : a quantitative evaluation," Policy Research Working Paper Series 1783, The World Bank.
    5. Peter Hammond & Jaume Sempere, 2009. "Migration with local public goods and the gains from changing places," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 41(3), pages 359-377, December.
    6. Glenn W Harrison & Thomas F Rutherford & David G Tarr, 1997. "Opciones de Política Comercial para Chile: Una Evaluación Cuantitativa," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 34(102), pages 101-137.
    7. Peter J. Hammond & Jaume Sempere, 2006. "Gains from Trade versus Gains from Migration: What Makes Them So Different?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 8(1), pages 145-170, January.
    8. Chichilnisky, Graciela & Hammond, Peter J., 2016. "The Kyoto Protocol and Beyond: Pareto Improvements to Policies that Mitigate Climate Change," CAGE Online Working Paper Series 287, Competitive Advantage in the Global Economy (CAGE).
    9. Earl Grinols & Peri Silva, 2011. "Rules of origin and gains from trade," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 47(1), pages 159-173, May.
    10. Gligorov, Vladimir, 2009. "Mobility and Transition in Integrating Europe," MPRA Paper 19198, University Library of Munich, Germany.
    11. Willmann, Gerald, 2004. "Pareto gains from trade: a dynamic counterexample," Economics Letters, Elsevier, vol. 83(2), pages 199-204, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecj:econjl:v:105:y:1995:i:432:p:1180-1204. 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: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/resssea.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.