Working Paper


J. Peter Neary
James E. Anderson



f13 uniform tariff reductions commercial policy tariff moments f15 piecemeal policy reform international economic integration tariff concertina rule market access

Welfare versus market access : the implications of tariff structure for tariff reform (2004)

Abstract We show that the effects of tariff changes on welfare and import volume can be fullycharacterised by their effects on the generalised mean and variance of the tariff distribution. Using these tools, we derive new results for welfare- and market-access-improving tariff changes, which imply two "cones of liberalisation" in price space. Because welfare is negatively butimport volume positively related to the generalised variance, the cones do not intersect, which poses a dilemma for trade policy reform. Finally, we show that generalised and trade-weighted moments are mutually proportional when the trade expenditure function is CES.
Collections Ireland -> University College Dublin -> Economics Working Papers & Policy Papers
Ireland -> University College Dublin -> School of Economics
Ireland -> University College Dublin -> College of Social Sciences and Law

Full list of authors on original publication

J. Peter Neary, James E. Anderson

Experts in our system

J. Peter Neary
University College Dublin
Total Publications: 79