The Optimal Tax on Antebellum U.S. Cotton Exports
The United States produced about 80 percent of the world's cotton in the decades prior to the Civil War. How much monopoly power did the United States possess in the world cotton market and what would have been the effect of an optimal export tax? This paper estimates the elasticity of foreign demand for U.S. cotton exports and uses the elasticity in a simple partial equilibrium model to calculate the optimal export tax and its effect on prices, trade, and welfare. The results indicate that the export demand elasticity for U.S. cotton was about -1.7 and that the optimal export tax of about 50 percent would have raised U.S. welfare by about $6 million, about 0.1 percent of U.S. GDP or about 0.5 percent of the South's GDP.
|Date of creation:||Dec 2001|
|Publication status:||published as Irwin, Douglas A., 2003. "The optimal tax on antebellum US cotton exports," Journal of International Economics, Elsevier, vol. 60(2), pages 275-291, August.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Harley, C. Knick, 1992.
"The antebellum American tariff: Food exports and manufacturing,"
Explorations in Economic History,
Elsevier, vol. 29(4), pages 375-400, October.
- Harley, C.K., 1991. "The Antebellum American Tariff : Food Exports and Manufacturing," UWO Department of Economics Working Papers 9105, University of Western Ontario, Department of Economics.
- James, John A, 1981. "The Optimal Tariff in the Antebellum United States," American Economic Review, American Economic Association, vol. 71(4), pages 726-734, September.
- Julian M. Alston & Colin A. Carter & Richard Green & Daniel Pick, 1990. "Whither Armington Trade Models?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(2), pages 455-467.
- Van Duyne, Carl, 1975. "Commodity Cartels and the Theory of Derived Demand," Kyklos, Wiley Blackwell, vol. 28(3), pages 597-612.
- Panagariya, Arvind & Shah, Shekhar & Mishra, Deepak, 2001. "Demand elasticities in international trade: are they really low?," Journal of Development Economics, Elsevier, vol. 64(2), pages 313-342, April.
- Shah, Shekhar & Mishra, Deepak & Panagariya, Arvind, 1996. "Demand elasticities in international trade : are they really low?," Policy Research Working Paper Series 1712, The World Bank.
- Brown, Drusilla K., 1987. "Tariffs, the terms of trade, and national product differentiation," Journal of Policy Modeling, Elsevier, vol. 9(3), pages 503-526.
- David G. Surdam, 1998. "King Cotton: Monarch or Pretender? The State of the Market for Raw Cotton on the Eve of the American Civil War," Economic History Review, Economic History Society, vol. 51(1), pages 113-132, 02.
- Alston, Julian M & Foster, Kenneth A & Green, Richard D, 1994. "Estimating Elasticities with the Linear Approximate Almost Ideal Demand System: Some Monte Carlo Results," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 351-356, May.
- James, John A., 1978. "The welfare effects of the antebellum tariff: A general equilibrium analysis," Explorations in Economic History, Elsevier, vol. 15(3), pages 231-256, July.
- Wright, Gavin, 1971. "An Econometric Study of Cotton Production and Trade, 1830-1860," The Review of Economics and Statistics, MIT Press, vol. 53(2), pages 111-120, May.
- Lloyd A. Metzler, 1949. "Tariffs, the Terms of Trade, and the Distribution of National Income," Journal of Political Economy, University of Chicago Press, vol. 57, pages 1-1.
- Thomas I. Wahl & Dermot J. Hayes, 1990. "Demand System Estimation with Upward-Sloping Supply," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 38(1), pages 107-122, 03.
- Wahl, Thomas I. & Hayes, Dermot J., 1990. "Demand System Estimation with Upward-Sloping Supply," Staff General Research Papers Archive 292, Iowa State University, Department of Economics.
- Duffy, Patricia A. & Shalishali, Kasazi & Kinnucan, Henry W., 1994. "Acreage Response Under Farm Programs for Major Southeastern Field Crops," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 26(02), pages 367-378, December.
- Duffy, Patricia A. & Shalishali, Kasazi & Kinnucan, Henry W., 1994. "Acreage Response Under Farm Programs For Major Southeastern Field Crops," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(02), December.
- Wright, Gavin, 1974. "Cotton Competition and the Post-Bellum Recovery of the American South," The Journal of Economic History, Cambridge University Press, vol. 34(03), pages 610-635, September.
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
- Huertas, Thomas F., 1979. "Damnifying Growth in the Antebellum South," The Journal of Economic History, Cambridge University Press, vol. 39(01), pages 87-100, March. Full references (including those not matched with items on IDEAS)