Trade policy and redistribution when preferences are non-homothetic

C-Tier
Journal: Economics Letters
Year: 2017
Volume: 155
Issue: C
Pages: 92-95

Authors (2)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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.

Technical Details

RePEc Handle
repec:eee:ecolet:v:155:y:2017:i:c:p:92-95
Journal Field
General
Author Count
2
Added to Database
2026-01-25