TY  - JOUR
AU  - Anderson,James E.
TI  - Revenue Neutral Trade Reform with Many Households, Quotas and Tariffs
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6181
PY  - 1997
Y2  - September 1997
UR  - http://www.nber.org/papers/w6181
L1  - http://www.nber.org/papers/w6181.pdf
N1  - Author contact info:
James E. Anderson
Department of Economics
Boston College
Chestnut Hill, MA 02467
Tel: 617/552-3691
Fax: 617/552-2308
E-Mail: james.anderson.1@bc.edu
AB  - Government budget balance forces the endogenous use of distortionary tax instruments" when an exogenous reform is implemented.  The aggregate efficiency of such reforms is based" on comparisons of simple summary measures of the Marginal Cost of Funds of the various tariff" or quota changes with the Marginal Cost of Funds of the alternative taxes Benefit of Government supplied goods. The aggregate efficiency of tariff liberalization is" dubious, while quota liberalization is more likely to be efficient. Social welfare rises with" aggregate efficiency unless distribution effects are perverse. Plausible sufficient conditions for" non-perverse distributional effects are provided.  The results frame a diagnostic method for" sensitivity analysis in evaluations of trade and tax policies.
ER  -