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Evaluating trade reform with many consumers

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  • Jiandong Ju
  • Kala Krishna

Abstract

In this paper we look at the welfare effects of trade reform in the many‐consumers case. We show that Pareto‐improving reforms with lump‐sum taxation or with non‐lump‐sum taxation are possible in the small country case if sufficient conditions for welfare to rise in the single‐consumer case are met. JEL Classification: F0, F1 Evaluation d'une réforme de la politique commerciale quand il y a plusieurs consommateurs. Les auteurs examinent les effets de bien‐être d'une réforme de la politique commerciale quand il y a plusieurs consommateurs. On montre que des réformes améliorant la situation au sens de Pareto sont possibles grâce à des taxes forfaitaires ou non forfaitaires dans le cas de petits pays si on satisfait les conditions nécessaires pour une amélioration du niveau de bien‐être dans le cas d'un seul consommateur.

Suggested Citation

  • Jiandong Ju & Kala Krishna, 2000. "Evaluating trade reform with many consumers," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 33(3), pages 787-798, August.
    • Handle: RePEc:wly:canjec:v:33:y:2000:i:3:p:787-798
    DOI: 10.1111/0008-4085.00041
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    Cited by:

    1. Davide Sala, 2007. "RTAs Formation and Trade Policy," Economics Working Papers ECO2007/59, European University Institute.
    2. Shimamoto, Mihoko, 2008. "Forest sustainability and trade policies," Ecological Economics, Elsevier, vol. 66(4), pages 605-614, July.
    3. Bhattacharyya, Ranajoy & Mandal, Avijit, 2016. "India–ASEAN Free Trade Agreement: An ex post evaluation," Journal of Policy Modeling, Elsevier, vol. 38(2), pages 340-352.
    4. Deergha Raj Adhikari, 2009. "Evaluating NAFTA - an impulse function approach," Applied Economics Letters, Taylor & Francis Journals, vol. 16(4), pages 353-357.
    5. Avijit Mandal, 2019. "Welfare Effect of Free Trade Agreements: A Theoretical Note," Foreign Trade Review, , vol. 54(2), pages 115-125, May.
    6. Gabrielyan, Georgi T., 2017. "Economics of Import Duty and Excise Tax Drawback," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258026, Agricultural and Applied Economics Association.

    More about this item

    JEL classification:

    • F0 - International Economics - - General
    • F1 - International Economics - - Trade

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