Trade Policy and Redistribution When Preferences are Non-Homothetic

• Tác giả: Quy-Toan Do
• Ngôn ngữ: eng
• Ký hiệu phân loại: 330 Economics
• Thông tin xuất bản: Elsevier, 2018
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 297689
• Chủ đề: 1. FOOD EXPORT BAN; 2. REDISTRIBUTION; 3. TRADE RESTRICTIONS

Tóm tắt

We compare redistribution through trade restrictions vs. domestic lump-sum transfers. When preferences are non-homothetic, even domestic lump-sum transfers affect relative prices. Thus, contrary to the conventional wisdom, domestic lump-sum transfers are not necessarily superior to distortionary trade policy. We develop this argument in the context of food export bans imposed by many developing countries in the late 2000s.