Abstract
We extend the theory of unilateral piecemeal tariff reforms by considering both economy-wide (tariffs) and sector-specific (production subsidies) distortions. Sufficient conditions for welfare-improving policy reforms involve both tariffs and sector-specific distortions changes and require stronger assumptions on goods' substitutability and the structure of distortions.
Original language | English (US) |
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Pages (from-to) | 65-71 |
Number of pages | 7 |
Journal | Economics Letters |
Volume | 39 |
Issue number | 1 |
DOIs | |
State | Published - May 1992 |
Externally published | Yes |
ASJC Scopus subject areas
- Finance
- Economics and Econometrics