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2005•Canadian Journal of Economics/Revue canadienne d économiqueRequires access

Welfare‐ranking ad valorem and specific tariffs under monopolistic competition

Jan Guldager Jørgensen, Philipp J. H. Schröder

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Abstract

Abstract. Actual trade and tariff policy prefers ad valorem tariffs to specific tariffs. Yet in this paper we show that, in a setting of monopolistic competition, realizing a given restriction on imports via a specific tariff would generate more consumer utility than obtaining the same restriction via an ad valorem tariff. JEL classification: F12

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Abstract. Actual trade and tariff policy prefers ad valorem tariffs to specific tariffs. Yet in this paper we show that, in a setting of monopolistic competition, realizing a given restriction on imports via a specific tariff would generate more consumer utility than obtaining the same restriction via an ad valorem tariff. JEL classification: F12

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OpenAlex reports 42 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

Abstract. Actual trade and tariff policy prefers ad valorem tariffs to specific tariffs. Yet in this paper we show that, in a setting of monopolistic competition, realizing a given restriction on imports via a specific tariff would generate more consumer utility than obtaining the same restriction via an ad valorem tariff. JEL classification: F12

Key concepts: Monopolistic competition, Ad valorem tax, Tariff, Economics, Ranking (information retrieval), Welfare, Competition (biology), Microeconomics

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