TY  - JOUR
AU  - Engel,Charles
AU  - Kletzer,Kenneth
TI  - Tariffs and Saving in a Model with New Families
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2521
PY  - 1988
Y2  - February 1988
UR  - http://www.nber.org/papers/w2521
L1  - http://www.nber.org/papers/w2521.pdf
N1  - Author contact info:
Charles Engel
Department of Economics
University of Wisconsin
1180 Observatory Drive
Madison, WI  53706-1393
Tel: 608/262-3697
Fax: 608/262-2033
E-Mail: cengel@ssc.wisc.edu

Kenneth Kletzer
University of California, Santa Cruz
Department of Economics
217 Social Sciences 1
Santa Cruz, CA  95064
Tel: 408-459-3407
E-Mail: kkletzer@cats.ucsc.edu
AB  - The paper explores how a tariff may affect saving through intergenerational redistribution of income that is caused by changes in factor prices and by the distribution of tariff revenue. The model is a Blanchard-type overlapping generations model. Two types of revenue distribution schemes are examined ? lump-sum distribution of current revenues to currently living individuals, and distribution as a subsidy to holders of physical wealth. (There is no fiscal policy in this paper -- the government budget is continuously balanced). We draw some general conclusions about the non-neutralities that arise in this type of model as opposed to single-generation models, or models in which perfect bequest motives exist.
ER  -