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Income Effects and Paradoxes in the Theory of International Trade
University of Rochester.
1984 (English)Report (Other academic)
Abstract [en]

The literature on international trade theory contains a series of paradoxes in cases of tariffs, growth, and transfers. This paper discusses the key role of income (as opposed to substitution) effects in supporting such paradoxes and suggests how the new welfare paradoxes in the three-agent transfer problem are related to the Metzler and Lerner tariff paradoxes, on the one hand, and that of immiserizing growth, on the other. The concluding section of the paper describes how far an optimal tariff policy can succeed in dispelling these paradoxes.

Place, publisher, year, edition, pages
Stockholm: IIES , 1984. , 33 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 280
National Category
URN: urn:nbn:se:su:diva-41275OAI: diva2:329278
Published in connection with a visit at the IIESAvailable from: 2010-07-09 Created: 2010-07-09 Last updated: 2010-07-09

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