Welfare-ranking ad valorem and specific tariffs under monopolistic competition

Actual trade and tariff policy prefers ad valorem tariffs to specific tariffs. Yet in this paper we show that, in a setting of monopolistic competition, realizing a given restriction on imports via a specific tariff would generate more consumer utility than obtaining the same restriction via an ad valorem tariff.

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Year of publication:	2005
Authors:	Jørgensen, Jan ; Schröder, Philipp
Published in:	Canadian Journal of Economics. - Canadian Economics Association - CEA. - Vol. 38.2005, 1, p. 228-241
Publisher:	Canadian Economics Association - CEA

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Extent:	application/pdf
Type of publication:	Article
Notes:	Published
Classification:	F12 - Models of Trade with Imperfect Competition and Scale Economies
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005770283