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Welfare-Ranking Ad Valorem and Specific Tariffs under Monopolistic Competition

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Actual trade and tariff policy prefers ad valorem tariffs to specific tariffs. Yet in this paper we show that, in a setting of monopolistic competition, realizing a given restriction on imports via a specific tariff would generate more consumer utility than obtaining the same restriction via an ad valorem tariff.
Udgivelsesdato: FEB
Original languageEnglish
JournalCanadian Journal of Economics
Pages (from-to)228-241
Number of pages14
Publication statusPublished - 2005

    Research areas

  • WTO, Monopolistic competition, economic integration

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