English, Article, Journal or magazine article edition: Effective Protection Redux James Anderson

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Bookmark: http://trove.nla.gov.au/version/73777
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Effective Protection Redux
Author
  • James Anderson
Physical Description
  • preprint
Notes
  • This paper rehabilitates effective protection. In general equilibrium, the usual definition (the percentage change in value added per unit induced by the tariff structure) corresponds to no economically interesting magnitude. The effective rate of protection for sector j is defined here as the uniform tariff which is equivalent to the actual differentiated tariff structure in its effect on the rents to residual claimants in sector j. This definition applies to general as well as partial equilibrium economic structures, has obvious relevance for political economy models and seems to correspond to the motivation for the early effective protection literature. Like the earlier effective rate formula, the concept is operational using the widely available set of Computable General Equilibrium (CGE) models. An example is provided for the US economy. The numerical results for the old and new concepts are not significantly correlated.
  • effective protection, distance function
  • RePEc:boc:bocoec:308
Language
  • English
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