Welfare‐ranking ad valorem and specific tariffs under monopolistic competition |
| |
| Authors: | Jan G. Jø rgensen, Philipp J.H. Schrö der |
| |
| Affiliation: | Department of Economics, University of Southern Denmark; Aarhus School of Business and DIW Berlin |
| |
| Abstract: | ![]()
Abstract. 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. JEL classification: F12 |
| |
| Keywords: | |
|
|
