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dc.contributor.authorRaimondos-Møller, Pascalisen
dc.contributor.authorWoodland, Alan D.en
dc.date.accessioned2011-10-14-
dc.date.accessioned2011-12-01T13:05:05Z-
dc.date.available2011-12-01T13:05:05Z-
dc.date.issued2011-
dc.identifier.urihttp://hdl.handle.net/10419/52500-
dc.description.abstractWe examine in detail the circumstances under which reciprocity, as defined in Bagwell and Staiger (1999), leads to fixed world prices. We show that a change of tariffs satisfying reciprocity does not necessarily imply constant world prices in a world of many goods and countries. While it is possible to find tariff reforms that are consistent with both reciprocity and constant world prices, these reforms do not follow from the reciprocity condition, but rather from the requirement of unchanged world prices. We propose an alternative reciprocity rule that is guaranteed to raise the welfare of all countries, independently of whether world prices change and independently of the relative numbers of goods and countries.en
dc.language.isoengen
dc.publisher|aCenter for Economic Studies and ifo Institute (CESifo) |cMunichen
dc.relation.ispartofseries|aCESifo Working Paper |x3607en
dc.subject.jelF02en
dc.subject.jelF13en
dc.subject.jelF15en
dc.subject.ddc330en
dc.subject.keywordGATTen
dc.subject.keywordreciprocityen
dc.subject.keywordfixed world pricesen
dc.titleReciprocity, world prices and welfare-
dc.typeWorking Paperen
dc.identifier.ppn669982717en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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