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The Protective Effect of an Ad Valorem Versus Specific Tariff Under Uncertainty

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  • Eldor, Rafael

Abstract

This paper shows that in a small country where arrangements to enable risk—sharing do not exist, a specific tariff is more protective under uncertainty than a mean—equivalent ad valorem tariff. This result does not necessarily hold for a large country case.

Suggested Citation

  • Eldor, Rafael, 1982. "The Protective Effect of an Ad Valorem Versus Specific Tariff Under Uncertainty," Foerder Institute for Economic Research Working Papers 275365, Tel-Aviv University > Foerder Institute for Economic Research.
    • Handle: RePEc:ags:isfiwp:275365
    DOI: 10.22004/ag.econ.275365
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    References listed on IDEAS

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    1. Sandmo, Agnar, 1971. "On the Theory of the Competitive Firm under Price Uncertainty," American Economic Review, American Economic Association, vol. 61(1), pages 65-73, March.
    2. Leslie Young & James E. Anderson, 1980. "The Optimal Policies for Restricting Trade under Uncertainty," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(5), pages 927-932.
    3. Young, Lealie, 1980. "Tariffs vs . Quotas under Uncertainty: An Extension," American Economic Review, American Economic Association, vol. 70(3), pages 522-527, June.
    4. Fishelson, Gideon & Flatters, Frank, 1975. "The (non)equivalence of optimal tariffs and quotas under uncertainty," Journal of International Economics, Elsevier, vol. 5(4), pages 385-393, November.
    5. Mayer, Wolfgang, 1976. "The Rybczynski, Stolper-Samuelson, and Factor-Price Equalization Theorems under Price Uncertainty," American Economic Review, American Economic Association, vol. 66(5), pages 797-808, December.
    6. Dasgupta, Partha & Stiglitz, Joseph E, 1977. "Tariffs vs . Quotas as Revenue Raising Devices under Uncertainty," American Economic Review, American Economic Association, vol. 67(5), pages 975-981, December.
    7. Baron, David P, 1970. "Price Uncertainty, Utility, and Industry Equilibrium in Pure Competition," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 11(3), pages 463-480, October.
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