IDEAS home Printed from https://ideas.repec.org/a/pal/imfstp/v41y1994i4p675-683.html
   My bibliography  Save this article

The Trade and Welfare Consequences of U.S. Export-Enhancing Tax Provisions

Author

Listed:
  • Donald J. Rousslang

    (International Monetary Fund)

  • Stephen P. Tokarick

    (International Monetary Fund)

Abstract

The U.S. tax code contains two provisions that encourage exports by reducing the U.S. corporate income tax on export profits. In this paper we use an applied general equilibrium model of the U.S. economy to estimate the trade and welfare consequences of eliminating these tax provisions. We find that the provisions ameliorate the trade-discouraging effects of U.S. tariffs, but that they also adversely affect the U.S. terms of trade to such an extent that eliminating the provisions is likely to improve U.S. domestic welfare. We also find that a tariff reduction that replicates the trade effects of removing the tax provisions would interact differently with other distortions in the model and would have different effects on welfare.

Suggested Citation

  • Donald J. Rousslang & Stephen P. Tokarick, 1994. "The Trade and Welfare Consequences of U.S. Export-Enhancing Tax Provisions," IMF Staff Papers, Palgrave Macmillan, vol. 41(4), pages 675-683, December.
    • Handle: RePEc:pal:imfstp:v:41:y:1994:i:4:p:675-683
    as

    Download full text from publisher

    File URL: http://www.jstor.org/stable/3867524?origin=pubexport
    File Function: main text
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mihir A. Desai & James R. Hines, Jr., 2001. "The Uneasy Marriage of Export Incentives and the Income Tax," NBER Chapters, in: Tax Policy and the Economy, Volume 15, pages 41-94, National Bureau of Economic Research, Inc.
    2. Mihir A. Desai & James R. Hines Jr., 2001. "Exchange Rates and Tax-Based Export Promotion," NBER Working Papers 8121, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:imfstp:v:41:y:1994:i:4:p:675-683. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.