Tariff reforms with rigid wages (Q834721): Difference between revisions
From MaRDI portal
Removed claim: reviewed by (P1447): Item:Q513108 |
ReferenceBot (talk | contribs) Changed an Item |
||
(3 intermediate revisions by 3 users not shown) | |||
Property / reviewed by | |||
Property / reviewed by: Evangelos Grigoroudis / rank | |||
Normal rank | |||
Property / MaRDI profile type | |||
Property / MaRDI profile type: MaRDI publication profile / rank | |||
Normal rank | |||
Property / OpenAlex ID | |||
Property / OpenAlex ID: W2028140266 / rank | |||
Normal rank | |||
Property / cites work | |||
Property / cites work: A Recommendation for a Better Tariff Structure / rank | |||
Normal rank | |||
Property / cites work | |||
Property / cites work: Trade Liberalisation and Shadow Prices in the Presence of Tariffs and Quotas / rank | |||
Normal rank |
Latest revision as of 21:34, 1 July 2024
scientific article
Language | Label | Description | Also known as |
---|---|---|---|
English | Tariff reforms with rigid wages |
scientific article |
Statements
Tariff reforms with rigid wages (English)
0 references
27 August 2009
0 references
Recently, three major approaches have been used to analyse piecemeal trade policy reform. According to the first approach, the traditional focus on welfare improvements is supplemented as the objective of the reforms with considerations of market access. The second approach expands the range of reforms known to be welfare or market access improving. Finally, the third approach introduces a binding minimum wage into the standard model of a competitive small open economy to consider the welfare effects of trade policy reform in the presence of involuntary unemployment. This paper builds on all three aforementioned contributions and analyses the effects of tariff reforms on welfare and market access in a competitive small open economy, which is characterised by involuntary unemployment due to non-market clearing wages that are fixed either in terms of the numeraire or in real terms. It shows that recent tariff-reform results can be extended to integrated reforms of tariffs and the wage rate, and that the inherent tension between reforms that increase welfare and market access carries over. Welfare increasing tariff-reform strategies, which keep the wage rate constant, are also derived, and it is shown that this tension may be attenuated.
0 references
welfare economics
0 references
tariff reform
0 references
unemployment
0 references
small open economy
0 references