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)|
|Number of pages||7|
|State||Published - May 1992|
ASJC Scopus subject areas
- Economics and Econometrics