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- W2066903114 abstract "This paper analyzes the role of production distortion for income redistribution in an international trade model. In particular, it examines the role of the Stolper and Samuelson effect (Stolper and Samuelson, 1941) on efficient income redistribution. It first shows that production inefficiency can be a part of a Pareto-efficient tax system when there is an asymmetric information problem between the government and individuals. Second, by using the technique that Diamond and Mirrlees (1971) originally developed, this paper shows that such production inefficiency is not only Pareto-improving for a small country but also essential in achieving world-wide Pareto-efficient allocation. Those two results suggest important policy implications for commercial policies." @default.
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- W2066903114 date "2004-01-01" @default.
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- W2066903114 title "Redistribution, Production Inefficiency and Decentralized Efficiency" @default.
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- W2066903114 doi "https://doi.org/10.2139/ssrn.492882" @default.
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