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Title: |
Achieving Pareto Superiority under Free Trade:
An Alternative to the Dixit-N orman Scheme |
| Author: |
Casas, Francois
R.; Han, Jae-Dong |
| Author
Affiliation: |
U Toronto |
| Source: |
International Economic Journal, Winter 1988, v. 2, no. 4, pp. 1-7 |
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Publication Date: |
Winter 1988 |
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Abstract: |
This paper proposes a tax-cum-subsidy
redistribution scheme which establishes the Pareto superiority of free
trade over autarky in a stronger sense than the well-known Dixit-Norman
scheme by ensuring that each consumer is better off under free trade
prior to the distribution of the net revenue accruing to the government
from the scheme. While the cost of its implementation may be higher than
that of the Dixit-Norman proposal, the latter is likely to be perceived
as more protectionist than the proposed alternative. |
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