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Import tariffs, quality investment and welfare

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dc.affiliation.dptoUC3M. Departamento de EconomĂ­aes
dc.contributor.authorHernĂ¡n, Roberto
dc.contributor.authorKujal, Praveen
dc.date.accessioned2006-11-09T11:38:51Z
dc.date.available2006-11-09T11:38:51Z
dc.date.issued2005-11
dc.description.abstractIn this paper we study incentives for a government to impose a discriminatory or uniform import tariff on its low and high quality imports. In comparison to free trade both tariffs decrease total welfare. In response to any tariff, firms decrease quality investment and total output sold declines. The degree of product differentiation under both the tariffs increases. Consumer surplus declines by a greater amount than the increase in revenues under an import tariff. While the uniform tariff works to the advantage of the high quality firm, the discriminative tariff works to the advantage of the low quality firm. Total welfare, though lower than under free trade, is greater under a uniform than under a discriminatory tariff.
dc.format.extent412482 bytes
dc.format.mimetypeapplication/pdf
dc.identifier.issn2340-5031
dc.identifier.repecwe056116
dc.identifier.urihttps://hdl.handle.net/10016/358
dc.language.isoeng
dc.language.isoeng
dc.relation.ispartofseriesUC3M Working Paper. Economics
dc.relation.ispartofseries2005-16
dc.rightsAtribuciĂ³n-NoComercial-SinDerivadas 3.0 España
dc.rights.accessRightsopen access
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.subject.ecienciaEconomĂ­a
dc.titleImport tariffs, quality investment and welfare
dc.typeworking paper*
dspace.entity.typePublication
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