Market Access and Welfare Effects of Piecemeal Policy Reform

18 Pages Posted: 11 Jun 2000 Last revised: 7 Oct 2010

See all articles by Jiandong Ju

Jiandong Ju

University of Oklahoma - Department of Economics; Tsinghua University - PBC School of Finance

Kala Krishna

Pennsylvania State University - Department of Economics; National Bureau of Economic Research (NBER)

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Date Written: November 1997

Abstract

In a situation where tariff reforms are being negotiated between two parties aims to raise its exports and the other aims to raise its welfare, tariff cuts must be in the interest" of at least one party. It is possible for the interests of the two sides to conflict. Conflict is certain" if the excess demand for exported goods does not respond to changes in the prices of imported" goods. In this case, any policy which raises imports must also reduce welfare."

Suggested Citation

Ju, Jiandong and Krishna, Kala, Market Access and Welfare Effects of Piecemeal Policy Reform (November 1997). NBER Working Paper No. w6294, Available at SSRN: https://ssrn.com/abstract=226051

Jiandong Ju (Contact Author)

University of Oklahoma - Department of Economics ( email )

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Tsinghua University - PBC School of Finance

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Kala Krishna

Pennsylvania State University - Department of Economics ( email )

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