IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Estimating the Welfare Cost of Tariffs: The Roles of Leisure and Domestic Taxes

  • Rousslang, Donald J
  • Tokarick, Stephen P

In this paper, the authors use an applied general equilibrium model to estimate the welfare cost of a uniform U.S. tariff. The model accounts for the work-leisure distortion imposed by domestic taxes and allows leisure and nontraded goods to be net complements in demand, as is suggested by empirical evidence. Applied trade models generally fail to account for the work-leisure distortion because they omit leisure or domestic taxes and they use utility functions such as Cobb-Douglas, Stone-Geary, or CES that preclude net complementarity in demand. The authors demonstrate that either failing can lead to large errors in the welfare estimates for tariffs. Copyright 1995 by Royal Economic Society.

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.

File URL: http://links.jstor.org/sici?sici=0030-7653%28199501%292%3A47%3A1%3C83%3AETWCOT%3E2.0.CO%3B2-7&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 look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 47 (1995)
Issue (Month): 1 (January)
Pages: 83-97

as
in new window

Handle: RePEc:oup:oxecpp:v:47:y:1995:i:1:p:83-97
Contact details of provider: Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Web page: http://oep.oupjournals.org/
Email:

Order Information: Web: http://www.oup.co.uk/journals

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:oup:oxecpp:v:47:y:1995:i:1:p:83-97. 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: (Oxford University Press)

or (Christopher F. Baum)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.