Journal article
The mercantilist index of trade policy
- Abstract:
- We introduce an index of trade policy restrictiveness defined as the uniform tariff that 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 instead of 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.
- Publication status:
- Published
- Peer review status:
- Peer reviewed
Actions
Authors
+ Organisation for Economic Co-operation and Development
More from this funder
- Funding agency for:
- Anderson, J
- Publisher:
- Blackwell Publishing
- Journal:
- International Economic Review More from this journal
- Volume:
- 44
- Issue:
- 2
- Pages:
- 627-649
- Publication date:
- 2003-05-01
- DOI:
- EISSN:
-
1468-2354
- ISSN:
-
0020-6598
- Language:
-
English
- Subjects:
- UUID:
-
uuid:6d311355-6981-4908-bb32-b667043cc2fb
- Local pid:
-
ora:2126
- Deposit date:
-
2008-06-27
Terms of use
- Copyright holder:
- Blackwell Publishing Ltd
- Copyright date:
- 2003
- Notes:
- N.B. Professor Neary was based at University College Dublin and CEPR when this article was first published. The full-text of this article is not available in ORA at this time. Citation: Anderson, J. E. & Neary, J. P. (2003). 'The mercantilist index of trade policy', International Economic Review, 44(2), 627-649. [The definitive version is available at www.blackwell-synergy.com].
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