Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86362
Authors: 
Francois, Joseph
Rojas-Romagosa, Hugo
Year of Publication: 
2004
Series/Report no.: 
Tinbergen Institute Discussion Paper 04-086/2
Abstract: 
We analyze general equilibrium relationships between trade policy and the household distribution of income, decomposing social welfare into real income level and variance components through Gini and Atkinson indexes. We embed these inequality-adjusted social welfare functions in a general equilibrium structure mapping from tariff protection to household inequality. This yields predictions regarding the linkages between trade protection, country characteristics and inequality in Heckscher-Ohlin and Ricardo-Viner frameworks. In addition, we can separate the efficiency and equity effects of tariffs on welfare. We then examine endogenous tariff formation when policy makers care about both equity and special interests.
Subjects: 
trade policy
household distribution of income
Atkinson index
Gini index
endogenous tariffs
tariffs and equity
JEL: 
F13
O15
D31
D72
Document Type: 
Working Paper

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