Potential Pareto-Improving Move Towards Most Favored Nation Tariffs

24 Pages Posted: 21 May 2013

See all articles by Sajal Lahiri

Sajal Lahiri

Southern Illinois University Carbondale - Department of Economics

Peri Silva

Kansas State University - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: April 1, 2013

Abstract

We use a multi-country asymmetric oligopolistic framework for segmented markets to study the welfare effects of reducing tariff discriminations - which we call a move towards Most Favored Nation tariffs. Both unilateral and multilateral reforms are considered. We investigate this issue under different scenarios such as when initial tariffs are arbitrary and when they are optimal. Conditions under which such harmonizations are potentially Pareto-improving are derived. We also analyze the effects on individual countries.

Keywords: Tariff reform, MFN, Welfare, Asymmetric Oligopoly

JEL Classification: F10, F11, F13

Suggested Citation

Lahiri, Sajal and Silva, Peri, Potential Pareto-Improving Move Towards Most Favored Nation Tariffs (April 1, 2013). Centro Studi Luca d'Agliano Development Studies Working Paper No. 348. Available at SSRN: https://ssrn.com/abstract=2267989 or http://dx.doi.org/10.2139/ssrn.2267989

Sajal Lahiri

Southern Illinois University Carbondale - Department of Economics ( email )

MC 415
1000 Faner Drive
Carbondale, IL 62901
United States

Peri Silva (Contact Author)

Kansas State University - Department of Economics ( email )

Manhattan, KS 66502-4001
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
17
Abstract Views
347
PlumX Metrics