Aggregating trade distortions

Vlad Manole, Will Martin

Research output: Contribution to journalArticle

Abstract

We analyze the properties of tariffrevenue and expenditure aggregators - tariffaggregators that keep expenditure, respectively tariffrevenue constant and, in the case of the second aggregator, we correct the definition. Furthermore, under common assumptions in applied trade, we develop closed-form solutions for the expenditure and tariffrevenue aggregators, which allows for practical applications of these aggregators in empirical trade. We also explore the relations between the trade-weighted average tariff, the expenditure aggregator and the revenue aggregator. We use these aggregators in a standard general equilibrium model for three countries to analyze the welfare gains from trade liberalization and compare the results.

Original languageEnglish (US)
Pages (from-to)320-328
Number of pages9
JournalEconomics Bulletin
Volume36
Issue number1
Publication statusPublished - Mar 17 2016

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All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)

Cite this

Manole, V., & Martin, W. (2016). Aggregating trade distortions. Economics Bulletin, 36(1), 320-328.