Tariff reform in the presence of sector-specific distortions

J. Beghin, L. S. Karp

Research output: Contribution to journalArticlepeer-review

3 Scopus citations


The problem of choosing second-best trade policies is modified by including sector-specific policies as well as tariffs. Formulae for the optimal tariff and sector-specific subsidy are derived and used to study the design of optimal policy menus. The theory is applied to a computable general equilibrium model of the US economy which emphasizes agriculture. The model suggests that non-agricultural distortions do not provide a second-best argument for substantial levels of agricultural protection. -Authors

Original languageEnglish (US)
Pages (from-to)294-309
Number of pages16
JournalCanadian Journal of Economics
Issue number2
StatePublished - 1992
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics


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