Misc.

Nov, 1995

THE TARGET RATES OF TARIFF AND TAX-REFORM

INTERNATIONAL ECONOMIC REVIEW
  • K ABE

Volume
36
Number
4
First page
875
Last page
885
Language
English
Publishing type
Publisher
UNIV PENN

This paper derives the target rates for the simultaneous reform of tariffs and commodity taxes in a small open economy with an endogenous public good. These target rates are independent of consumer preference for the public good but the reform increases welfare. As a special case, welfare is increased by the proportional reduction of all tariffs if it is accompanied by the uniform change of commodity taxes toward the ratio of government revenue to either private consumption or private production. We also present tariff and tax reforms which would lead the economy to the first-best if applied continuously.

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https://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcAuth=JSTA_CEL&SrcApp=J_Gate_JST&DestLinkType=FullRecord&KeyUT=WOS:A1995TC77100003&DestApp=WOS_CPL
ID information
  • ISSN : 0020-6598
  • Web of Science ID : WOS:A1995TC77100003

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