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The Theory of Variable Levies

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  • Bigman, David

Abstract

This paper develops an analytical framework for evaluating the policy of variable levies and assessing its effects on the country's trade, welfare, income distribution, b alance of payments, and fiscal budget. The analysis indicates that th e instability in domestic supply and world prices may justify certain measures of government interventions and trade restrictions; and app ropriately designed variable levies will not only insulate the econom y from the external instability, but may also raise the country's wel fare. Instability thus adds another dimension to the familiar "optim al tariff" argument. Copyright 1987 by Royal Economic Society.

Suggested Citation

  • Bigman, David, 1987. "The Theory of Variable Levies," Oxford Economic Papers, Oxford University Press, vol. 39(2), pages 357-377, June.
    • Handle: RePEc:oup:oxecpp:v:39:y:1987:i:2:p:357-77
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    Cited by:

    1. Kamal Saggi & Mark Wu, 2018. "Understanding Agricultural Price Range Systems as Trade Restraints: Peru–Agricultural Products," World Scientific Book Chapters, in: Kamal Saggi (ed.), Economic Analysis of the Rules and Regulations of the World Trade Organization, chapter 20, pages 455-482, World Scientific Publishing Co. Pte. Ltd..
    2. Kamal Saggi & Mark Wu, 2015. "Understanding Agricultural Price Range Systems as Trade Restraints: Peru – Agricultural Products (DS457)," Vanderbilt University Department of Economics Working Papers 15-00009, Vanderbilt University Department of Economics.
    3. Nordstrom, Hakan, 2001. "Do variable levies beggar thy neighbour?," European Journal of Political Economy, Elsevier, vol. 17(2), pages 403-420, June.

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