Sufficient statistics for tariff reform when revenue matters

A-Tier
Journal: Journal of International Economics
Year: 2016
Volume: 98
Issue: C
Pages: 150-159

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

What kinds of tariff reform are likely to raise welfare in situations where tariff revenue is important? General conditions for welfare to rise without reducing tariff revenue are opaque. We show that they can be greatly simplified using a small number of sufficient statistics, primarily the generalized mean and variance of tariffs. We present sufficient conditions for a class of linear tariff reform rules that guarantee higher welfare without a loss in revenue. The rules consist of convex combinations of (i) trade-weighted-average-tariff-preserving cuts in dispersion; and (ii) uniform tariff cuts that preserve domestic relative prices among tariff-ridden goods.

Technical Details

RePEc Handle
repec:eee:inecon:v:98:y:2016:i:c:p:150-159
Journal Field
International
Author Count
2
Added to Database
2026-01-24