Revenue Tariff Reform
What kind of tariff reform is likely to raise welfare in situations where tariff revenue is important? Uncertainty about specification and risk from imprecise parameter estimates of any particular specification reduce the credibility of simulation estimates. A promising alternative is to develop rules which are robust with respect to such uncertainty. We present sufficient conditions for a class of linear rule that guarantee welfare-improving tariff reform. The rules span cones of welfare-improving tariff reforms consisting of convex combinations of (i) trade-weighted-average-tariff-preserving dispersion cuts; and (ii) uniform tariff cuts that preserve domestic relative prices among tariff-ridden goods.
|Date of creation:||13 Dec 2013|
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"Welfare versus market access: The implications of tariff structure for tariff reform,"
Journal of International Economics,
Elsevier, vol. 71(1), pages 187-205, March.
- James E. Anderson & J. Peter Neary, 2004. "Welfare versus Market Access: The Implications of Tariff Structure for Tariff Reform," Boston College Working Papers in Economics 601, Boston College Department of Economics.
- James E. Anderson & J. Peter Neary, 2004. "Welfare versus market access : the implications of tariff structure for tariff reform," Working Papers 200423, School of Economics, University College Dublin.
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- Michael Keen & Thomas Baunsgaard, 2005. "Tax Revenue and (or?) Trade Liberalization," IMF Working Papers 05/112, International Monetary Fund. Full references (including those not matched with items on IDEAS)
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