Tariff and tax reform: Dynamic implications

• 成果类型: Article
• 署名作者: Naito, T
• 署名单位: Institute of Science Tokyo; Tokyo Institute of Technology
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2005.04.002
• 发表日期: 2006
• 页码: 504-517
• 关键词: endogenous growth; capital good; revenue-neutral tariff and tax reform; optimal tariff and tax structure; Tax base

摘要

In an endogenously growing small open economy with a capital good and a consumption good, we characterize the optimal combination of an import tariff and consumption taxes under the revenue neutrality constraint. Focusing on the case in which the economy imports the capital good, we obtain two main results. First, consumption of the capital good is distorted more than the consumption good at the optimum. Second, the optimal tariff rate is positive, implying that free trade is not optimal even for a small open economy with no market failure. (c) 2005 Elsevier B.V. All rights reserved.