Trade Policy and Redistribution when Preferences are Non-Homothetic /

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 tra...

Ausführliche Beschreibung

1. Verfasser:

Do, Quy-Toan

Körperschaft:

National Bureau of Economic Research

Weitere Verfasser:

Levchenko, Andrei A.

Format:

Elektronisch E-Book

Sprache:

Englisch

Veröffentlicht:

Cambridge, Mass. National Bureau of Economic Research 2017.

Zusammenfassung:

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.

Umfang:

1 online resource: illustrations (black and white);

Anmerkungen:

March 2017.

Schlagworte:

Trade Policy • International Trade Organizations

Trade Policy • Factor Movement Policy • Foreign Exchange Policy

Agriculture in International Trade