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: World Bank, Washington, DC, 2017
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 302478
• Chủ đề: 1. FOOD EXPORT BAN; 2. REDISTRIBUTION; 3. TRADE POLICY; 4. TRADE RESTRICTIONS

Tóm tắt

This paper compares redistribution through trade restrictions versus 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. The paper develops this argument in the context of the food export bans imposed by many developing countries in the late 2000s.