Trade Tax Reform in a Small Open Economy with Distributional Objectives and Distortionary Taxation
-
Jeremy Edwards
Abstract
The paper shows that, if two conditions are satisfied, both radial contraction and concertina trade tax reforms continue to be desirable in a small open economy that differs from the one usually considered by having distributional objectives and using distortionary taxes to raise revenue. The first condition is that some optimisation in the choice of commodity taxes takes place - at a minimum, taxes on nontraded goods must be optimally chosen while taxes on traded goods keep the consumer prices of such goods constant. The second is that pure profits are absent from every household's budget constraint. These conditions mean that some care is required in arguing the case for simple trade tax reforms in small open economies.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
Artikel in diesem Heft
- Frontiers of Economic Analysis & Policy
- Second-Best Pollution Taxation and Environmental Quality
- Advances in Economic Analysis & Policy
- Home Bias in Portfolios and Taxation of Asset Income
- Explaining Incomplete Contracts as the Result of Contract-Reading Costs
- Lobbying and Legislative Bargaining
- Contributions to Economic Analysis & Policy
- Why Governments Should Tax Mobile Capital in the Presence of Unemployment
- Testing the Economic Model of Crime:The National Hockey League's Two-Referee Experiment
- Road Warrior Booty: Prize Structures in Motorcycle Racing
- Optimal Environmental Regulation in the Presence of Other Taxes: The Role of Non-separable Preferences and Technology
- Adverse Selection, Short-Term Contracting, and the Underprovision of On-the-Job Training
- Credits, Crises, and Capital Controls: A Microeconomic Analysis
- The Effects of Social Security Privatization on Household Saving: Evidence from Chile
- Complexity, Bounded Rationality and Heuristic Search
- Patent Theory versus Patent Law
- An Assessment of the Proposals of the President's Commission to Strengthen Social Security
- Collusive Bidding in the FCC Spectrum Auctions
- Topics in Economic Analysis & Policy
- Pension systems in integrated capital markets
- Trade Tax Reform in a Small Open Economy with Distributional Objectives and Distortionary Taxation
Artikel in diesem Heft
- Frontiers of Economic Analysis & Policy
- Second-Best Pollution Taxation and Environmental Quality
- Advances in Economic Analysis & Policy
- Home Bias in Portfolios and Taxation of Asset Income
- Explaining Incomplete Contracts as the Result of Contract-Reading Costs
- Lobbying and Legislative Bargaining
- Contributions to Economic Analysis & Policy
- Why Governments Should Tax Mobile Capital in the Presence of Unemployment
- Testing the Economic Model of Crime:The National Hockey League's Two-Referee Experiment
- Road Warrior Booty: Prize Structures in Motorcycle Racing
- Optimal Environmental Regulation in the Presence of Other Taxes: The Role of Non-separable Preferences and Technology
- Adverse Selection, Short-Term Contracting, and the Underprovision of On-the-Job Training
- Credits, Crises, and Capital Controls: A Microeconomic Analysis
- The Effects of Social Security Privatization on Household Saving: Evidence from Chile
- Complexity, Bounded Rationality and Heuristic Search
- Patent Theory versus Patent Law
- An Assessment of the Proposals of the President's Commission to Strengthen Social Security
- Collusive Bidding in the FCC Spectrum Auctions
- Topics in Economic Analysis & Policy
- Pension systems in integrated capital markets
- Trade Tax Reform in a Small Open Economy with Distributional Objectives and Distortionary Taxation
