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dc.contributor.authorKatsimi, Margaritaen
dc.contributor.authorMoutos, Thomasen
dc.date.accessioned2009-01-28T15:53:07Z-
dc.date.available2009-01-28T15:53:07Z-
dc.date.issued2005-
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 incomeinequality 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 tariffrate 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
dc.language.isoengen
dc.publisher|aCenter for Economic Studies and ifo Institute (CESifo) |cMunichen
dc.relation.ispartofseries|aCESifo Working Paper |x1457en
dc.subject.jelH23en
dc.subject.jelF13en
dc.subject.ddc330en
dc.subject.keywordinequalityen
dc.subject.keywordtariffsen
dc.subject.keywordmedian-voteren
dc.subject.keywordtradeen
dc.subject.keywordvertical differentiationen
dc.subject.stwZollpolitiken
dc.subject.stwEinkommensverteilungen
dc.subject.stwEinkommensteueren
dc.subject.stwKomparativer Kostenvorteilen
dc.subject.stwMedian Voteren
dc.subject.stwSchätzungen
dc.subject.stwTheorieen
dc.subject.stwWelten
dc.titleInequality and relative reliance on tariffs : theory and evidence-
dc.typeWorking Paperen
dc.identifier.ppn48519175Xen
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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