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The mercantilist index of trade policy |
Anderson, James E.; Neary, J. Peter
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We introduce an index of trade policy restrictiveness defined as the uniform tariff which maintains the same trade volume as a given tariff/quota structure. Our index overcomes the problems of the trade-weighted average tariff: it avoids substitution bias, correctly accounts for general equilibrium transfers, and takes import volume rather than welfare as benchmark. Empirical applications to international cross-section and time-series comparisons of trade
policy confirm our theoretical results: trade-weighted average tariffs generally underestimate the true height of tariffs as measured by the trade-volume-equivalent index; this in turn always underestimates the welfare-equivalent index. OECD ; Economic and Social Research Council (ESRC)
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Keyword(s):
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Tariffs; Quotas; Trade Restrictiveness Index; Trade liberalisation; International trade policy; F13; International trade; Tariff; Restraint of trade; Commercial policy |
Publication Date:
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2009 |
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Type:
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Working paper |
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Peer-Reviewed:
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Unknown |
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Language(s):
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English |
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Institution:
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University College Dublin |
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Publisher(s):
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University College Dublin. School of Economics |
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File Format(s):
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other; application/pdf |
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First Indexed:
2012-08-25 05:22:44 Last Updated:
2018-10-11 15:45:11 |
