The Optimal Tariff Formula in a Two-Period Economy |
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Authors: | Tadashi Inoue |
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Institution: | University of Tsukuba, Ibaraki, Japan |
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Abstract: | The optimal tariff formula is derived for a large country trading both consumption goods and an investment good in a two-period economy. The formula greatly simplifies the results of the standard one-period economy where both consumption goods and real capital are traded with or without a non-traded good; in particular, the results do not depend on the relative intensities of the two goods. JEL Classification Numbers: D11, F11, F34. |
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