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The Optimal Tariff Structure in Higher Dimensions

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  • Bond, Eric W

Abstract

This paper generalizes to higher dimensions the two good result that the optimal trade policy for a large country is an import tariff. A weak form of the optimal tariff, requiring that an import (export) good be most (least) protected holds under gross substitutability. Sufficient conditions are obtained for a strong form of the optimal tariff (which requires that all imports be more protected than any export) and also for the trade tax revenue to be nonnegative in the optimal policy. Copyright 1990 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Suggested Citation

  • Bond, Eric W, 1990. "The Optimal Tariff Structure in Higher Dimensions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(1), pages 103-116, February.
  • Handle: RePEc:ier:iecrev:v:31:y:1990:i:1:p:103-16
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    Cited by:

    1. Carsten Kowalczyk & Raymond Riezman, 2009. "Trade Agreements," CESifo Working Paper Series 2660, CESifo Group Munich.
    2. Dinlersoz, Emin & Dogan, Can, 2010. "Tariffs versus anti-dumping duties," International Review of Economics & Finance, Elsevier, vol. 19(3), pages 436-451, June.
    3. Eric W. Bond, 2001. "Commercial Policy in a "Fragmented" World," American Economic Review, American Economic Association, vol. 91(2), pages 358-362, May.
    4. Carsten Kowalczyk, 1990. "Welfare and Customs Unions," NBER Working Papers 3476, National Bureau of Economic Research, Inc.
    5. Gene M. Grossman, 2016. "The Purpose of Trade Agreements," NBER Working Papers 22070, National Bureau of Economic Research, Inc.
    6. Dr. Deniz AYTAÇ & Dr. Sabiha KILIÇ, 2014. "The Short - And Long -Term Effects of Trade Taxes on Vertical Specialization," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(6), pages 732-743, June.
    7. Bond, Eric W. & Syropoulos, Constantinos, 1996. "The size of trading blocs Market power and world welfare effects," Journal of International Economics, Elsevier, vol. 40(3-4), pages 411-437, May.
    8. Opp, Marcus M., 2010. "Tariff wars in the Ricardian Model with a continuum of goods," Journal of International Economics, Elsevier, vol. 80(2), pages 212-225, March.
    9. Yoshitomo Ogawa, 2012. "The structure of Nash equilibrium tariffs," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 51(1), pages 139-161, September.

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