Welfare- and revenue-enhancing tariff and tax reform under imperfect competition

Takumi Naito, Kenzo Abe

Research output: Contribution to journalArticle

13 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)1085-1094
Number of pages10
JournalJournal of Public Economic Theory
Volume10
Issue number6
DOIs
Publication statusPublished - 2008 Dec
Externally publishedYes

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reform strategy
government revenue
tax reform
taxes
revenue
welfare
Imperfect competition
Tax reform
Intermediate goods
Consumption tax
Tariffs
Tariff reform
Government revenue
Revenue
Importing

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance
  • Sociology and Political Science

Cite this

Welfare- and revenue-enhancing tariff and tax reform under imperfect competition. / Naito, Takumi; Abe, Kenzo.

In: Journal of Public Economic Theory, Vol. 10, No. 6, 12.2008, p. 1085-1094.

Research output: Contribution to journalArticle

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