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Quantifying the fiscal effects of trade reform (English)

Using a tax model of an open economy, the authors provide a simple but rigorous method for estimating the fiscal impact of trade reform. Both the direction and the magnitude of the fiscal consequences of trade reform depend on the elasticities of substitution and transformation between foreign and domestic goods, so they provide empirical estimates of those elasticities. ... See More +

Policy Research Working Paper WPS2162 AUG 31, 1999

Devarajan, Shantayanan; Go, Delfin S.; Hongyi Li