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Tariffs And Saving In A Model With New Families

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  • ENGEL, C.
  • KLETZER, K.

Abstract

The paper explores how a tariff may affect saving through intergenerational redistribution of income that is caused by changes in factor prices and by the distribution of tariff revenue. The model is a Blanchard-type overlapping generations model. Two types of revenue distribution schemes are examined ? lump-sum distribution of current revenues to currently living individuals, and distribution as a subsidy to holders of physical wealth. (There is no fiscal policy in this paper -- the government budget is continuously balanced). We draw some general conclusions about the non-neutralities that arise in this type of model as opposed to single-generation models, or models in which perfect bequest motives exist.
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Suggested Citation

  • Engel, C. & Kletzer, K., 1988. "Tariffs And Saving In A Model With New Families," Papers 553, Yale - Economic Growth Center.
    • Handle: RePEc:fth:yalegr:553
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    Cited by:

    1. Eaton, Jonathan, 1989. "Monopoly Wealth and International Debt," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(1), pages 33-48, February.

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