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- W2141594213 abstract "This paper uses a numerical general equilibrium model to examine the quantitative importance of pre-existing factor tax distortions for the welfare effects of tariffs and import quotas. The presence of pre-existing taxes can greatly raise the costs of these policies, possibly by over several hundred percent. For a tariff much of this extra cost can be offset if tariff revenues are used to reduce distortionary taxes. Hence there can be a large cost discrepancy between tariffs and quotas. The optimal tariff for a country with market power in trade can be reduced to zero, unless revenues finance cuts in distortionary taxes." @default.
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- W2141594213 date "2001-01-01" @default.
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- W2141594213 title "The Costs of Restrictive Trade Policies in the Presence of Factor Tax Distortions" @default.
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- W2141594213 doi "https://doi.org/10.2139/ssrn.263439" @default.
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