NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Trade Policy and Redistribution when Preferences are Non-Homothetic

Quy-Toan Do, Andrei A. Levchenko

NBER Working Paper No. 23237
Issued in March 2017
NBER Program(s):ITI

We compare redistribution through trade restrictions vs. domestic lump-sum transfers. When preferences are non-homothetic, even domestic lump-sum transfers affect relative prices. Thus, contrary to the conventional wisdom, domestic lump-sum transfers are not necessarily superior to distortionary trade policy. We develop this argument in the context of food export bans imposed by many developing countries in the late 2000s.

You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.

Access to NBER Papers

You are eligible for a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.

E-mail:

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w23237

Published: Do, Quy-Toan & Levchenko, Andrei A., 2017. "Trade policy and redistribution when preferences are non-homothetic," Economics Letters, Elsevier, vol. 155(C), pages 92-95. citation courtesy of

Users who downloaded this paper also downloaded* these:
Wang, Wei, Yu, and Zhu w23222 Measures of Participation in Global Value Chains and Global Business Cycles
Feenstra, Luck, Obstfeld, and Russ w20063 In Search of the Armington Elasticity
Duflo w23213 The Economist as Plumber
Coibion, Gorodnichenko, and Kamdar w23304 The Formation of Expectations, Inflation and the Phillips Curve
Goldberg and Campa w12121 Distribution Margins, Imported Inputs, and the Sensitivity of the CPI to Exchange Rates
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us