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Shadow prices for project selection in the presence of distortions : effective rates of protection and domestic resource costs (anglais)

The derivation of shadow prices for use in project evaluation when the existing allocation is characterized by ad valorem trade distortions is described. A simple mode of trade, with primary factors producing traded goods and with no intermediates and with fixed international prices for the traded goods, explores the case of trade distortion. This distortion entails a tariff or trade subsidy. The results on the appropriate shadow prices in project...
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