Using a tax model of an open economy, the authors provide a simple but rigorous method for estimating the fiscal impact of trade reform. Both the direction and the magnitude of the fiscal consequences of trade reform depend on the elasticities of substitution and transformation between foreign and domestic goods, so they provide empirical estimates of those elasticities. They also discuss the implications of their analysis for public revenue. In general...
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INFORMATION
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1999/08/31
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Document de travail de recherche sur les politiques
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WPS2162
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1
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1
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2010/07/01
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Quantifying the fiscal effects of trade reform
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simple general equilibrium model
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