The Target Rates of Tariff and Tax Reform
This paper derives the target rates for the simultaneous reform of tariffs and commodity taxes in a small open economy with an endogenous public good. These target rates are independent of consumer preference for the public good but the reform increases welfare. As a special case, welfare is increased by the proportional reduction of all tariffs if it is accompanied by the uniform change of commodity taxes toward the ratio of government revenue to either private consumption or private production. The author also presents tariff and tax reforms that would lead the economy to the first-best if applied continuously. Copyright 1995 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 36 (1995)
Issue (Month): 4 (November)
|Contact details of provider:|| Postal: 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297|
Phone: (215) 898-8487
Fax: (215) 573-2057
Web page: http://www.econ.upenn.edu/ier
More information through EDIRC
|Order Information:|| Web: http://www.blackwellpublishing.com/subs.asp?ref=0020-6598 Email: |