IDEAS home Printed from
   My bibliography  Save this article

Alcohol policy harmonization and trade liberalization in the Nordic countries


  • Pasi Holm

    (Government Institute for Economic Research)


In this paper, a partial equilibrium analysis is used to evaluate consequences of a partial alcohol policy harmonization and a trade liberalization in the Nordic countries. The former will reduce alcoholic beverage taxes and the latter will increase imports of alcoholic beverages. The effects on welfare contributed by the alcohol sector depend on three factors: firstly, whether the import restriction is implemented through quota or voluntary import restriction set by the EU; secondly, how a public monopoly producing an externality generating commodity behaves, i.e. is a public firm e.g. welfare or profit maximizer?; and thirdlY, whether alcohol taxation in the EU is higher or lower than its Pigovian level in the Nordic countries.

Suggested Citation

  • Pasi Holm, 1995. "Alcohol policy harmonization and trade liberalization in the Nordic countries," Finnish Economic Papers, Finnish Economic Association, vol. 8(1), pages 17-24, Spring.
  • Handle: RePEc:fep:journl:v:8:y:1995:i:1:p:17-24

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Delipalla, Sofia & Keen, Michael, 1992. "The comparison between ad valorem and specific taxation under imperfect competition," Journal of Public Economics, Elsevier, vol. 49(3), pages 351-367, December.
    2. Holm, Pasi & Suoniemi, Ilpo, 1992. " Empirical Application of Optimal Commodity Tax Theory to Taxation of Alcoholic Beverages," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(1), pages 85-101.
    3. F. H. Hahn, 1962. "The Stability of the Cournot Oligopoly Solution," Review of Economic Studies, Oxford University Press, vol. 29(4), pages 329-331.
    4. Eldor, Rafael & Levin, Dan, 1990. "Trade Liberalization and Domestic Monopoly: A Welfare Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(4), pages 773-782, November.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    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:fep:journl:v:8:y:1995:i:1:p:17-24. 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: (Editorial Secretary). General contact details of provider: .

    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 CitEc recognized a reference but did not link an item in RePEc 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 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.