NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Mercantilist Index of Trade Policy

James E. Anderson, J. Peter Neary

NBER Working Paper No. 6870*
Issued in January 1999
NBER Program(s):   ITI

This paper develops and characterizes an index of trade policy restrictiveness defined as the uniform tariff equivalent which maintains the same volume of trade as a given set of tariffs, quota, and domestic taxes and subsidies. We relate this volume-equivalent index to the Trade Restrictiveness Index welfare-equivalent measure changes in the generalised mean and variance of the tariff schedule. Applications to international cross-section and time-series comparisons of trade policy show that the new index frequently gives a very different picture than do standard indexes.

*Published: Anderson, James E. and J. Peter Neary. "The Mercantilist Index Of Trade Policy," International Economic Review, 2003, v44(2,May), 627-649.

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