TRADE ADJUSTMENT ASSISTANCE AND PARETO GAINS FROM TRADE

• 成果类型: Article; Proceedings Paper
• 署名作者: FEENSTRA, RC; LEWIS, TR
• 署名单位: National Bureau of Economic Research; State University System of Florida; University of Florida; Hebrew University of Jerusalem
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/0022-1996(94)90001-9
• 发表日期: 1994
• 页码: 201-222
• 关键词: Gains from trade; ADJUSTMENT ASSISTANCE

摘要

In a model where all factors of production are imperfectly mobile, we argue that the Dixit-Norman scheme of commodity taxes may not lead to strict Pareto gains from trade. Rather, this scheme must be augmented by policies that give factors an incentive to move between industries: hence, the role for trade adjustment assistance. By offering an adjustment subsidy to all individuals willing to move, and also using the Dixit-Norman pattern of commodity taxes, the government can implement Pareto gains from trade under the condition we identify,