Setting the price of maize in rural Mexico above the world price is inefficient and likely to have negative distributional effects because many subsistence producers, and all landless workers, are net buyers; in fact it screens out the relatively poor rather than the relatively rich. The policy objective, therefore, should be to move toward free trade. This would yield large gains in efficiency. The Free Trade Agreement provides an ideal opportunity...
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1992/09/30
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Artigo de revista
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14106
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1
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1
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2010/07/01
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Maize and the free trade agreement between Mexico and the United States
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marginal welfare cost of taxation
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