1467-9779/asset/JPET_left.gif?v=1&s=922f5893ad7f92343344381d73d8889202fcfcd6)
1467-9779/asset/olbannercenter.gif?v=1&s=06cd02a03b21788aebc829fa80844f0b5b9e8467)
Welfare- and Revenue-Enhancing Tariff and Tax Reform under Imperfect Competition
Article first published online: 3 NOV 2008
DOI: 10.1111/j.1467-9779.2008.00397.x
© 2008 Wiley Periodicals, Inc.
Additional Information
How to Cite
NAITO, T. and ABE, K. (2008), Welfare- and Revenue-Enhancing Tariff and Tax Reform under Imperfect Competition. Journal of Public Economic Theory, 10: 1085–1094. doi: 10.1111/j.1467-9779.2008.00397.x
Publication History
- Issue published online: 3 NOV 2008
- Article first published online: 3 NOV 2008
- Received March 28, 2007; Accpeted August 11, 2008.
- Abstract
- Article
- References
- Cited By
Abstract
We examine welfare and revenue effects of tariff and tax reform in a country importing final and intermediate goods, both of which are produced under imperfect competition. We consider two reform strategies. First, lower the sum of a consumption tax and a tariff on the intermediate good, and leave the sum of the consumption tax and a tariff on the final good unchanged. Second, lower the former and change the latter to leave government revenue unchanged. We specify conditions under which each reform strategy raises welfare without decreasing government revenue.