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Title: |
Efficient Quality Specialization and Tariffs
in General Equilibrium |
| Author: |
Wall, Howard J. |
| Author
Affiliation: |
WV U |
| Source: |
International Economic Journal, Winter 1990, v. 4, no. 4, pp. 21-34 |
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Publication Date: |
Winter 1990 |
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Abstract: |
This paper examines the effect of a tariff
which is uniformly applied to a set of quality-differentiated goods. A
Ricardian model of two countries in general equilibrium is developed to
describe the pattern of specialization in quality ranges. The free trade
case is contrasted with the case where an import tariff is levied
uniformly on all qualities. It is shown that such a tariff can expand or
contract a country's range of specialization in the
quality-differentiated good while unambiguously contracting its range of
specialization in non-differentiated goods. |
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