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The mercantilist index of trade policy

Author

Listed:
  • Anderson, James
  • Neary, J. Peter

Abstract

This paper develops and characterises an index of trade policy restrictiveness defined as the uniform tariff equivalent which maintains the same volume of trade as a given set of tariffs, quotas, and domestic taxes and subsidies. We relate this volume-equivalent index to the Trade Restrictiveness Index, a welfare-equivalent measure, and relate changes in both indexes to changes in the generalised mean and variance of the tariff schedule. Applications to international cross-section and time-series comparisons of trade policy show that the new index frequently gives a very different picture than do standard indexes.

Suggested Citation

  • Anderson, James & Neary, J. Peter, 1998. "The mercantilist index of trade policy," LSE Research Online Documents on Economics 20242, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:20242
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    File URL: https://researchonline.lse.ac.uk/id/eprint/20242/
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    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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