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dc.contributor.authorKatsimi, Margaritaen_US
dc.contributor.authorMoutos, Thomasen_US
dc.date.accessioned2009-01-28T15:53:07Z-
dc.date.available2009-01-28T15:53:07Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/18821-
dc.description.abstractIn this paper we construct a Ricardian model of trade in vertically-differentiated products between a developing country and the (developed) rest of the world. Despite labour being the only factor of production in this model, tariffs (in addition to income taxes) have distributional consequences because the high-quality imported varieties are consumed only by high-income households. The model predicts a U-shaped relationship between income inequality and the median-voter?s preferred reliance on tariffs versus income taxes in order to effect the desired redistribution. Using data from 44 countries we test for the existence of this U-shaped relationship by estimating a cross-sectional regression relating the ratio of the tariff rate over the tax rate to inequality and a set of control variables such as GDP per capita, openness, the degree of democracy and area dummies. We find that the model?s predictions are supported by the data.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesCESifo working papers 1457en_US
dc.subject.jelH23en_US
dc.subject.jelF13en_US
dc.subject.ddc330en_US
dc.subject.keywordinequalityen_US
dc.subject.keywordtariffsen_US
dc.subject.keywordmedian-voteren_US
dc.subject.keywordtradeen_US
dc.subject.keywordvertical differentiationen_US
dc.subject.stwZollpolitiken_US
dc.subject.stwEinkommensverteilungen_US
dc.subject.stwEinkommensteueren_US
dc.subject.stwKomparativer Kostenvorteilen_US
dc.subject.stwMedian Voteren_US
dc.subject.stwSchätzungen_US
dc.subject.stwTheorieen_US
dc.subject.stwWelten_US
dc.titleInequality and relative reliance on tariffs : theory and evidenceen_US
dc.typeWorking Paperen_US
dc.identifier.ppn48519175Xen_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
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