2005SSRN Electronic JournalOpen access

Welfare-ranking Ad Valorem and Specific Tariffs under Monopolistic Competition

Jan Guldager Jørgensen, Philipp J. H. Schröder

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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.

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What this paper is about

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.

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OpenAlex reports 2 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available 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.

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

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