|Tarasov, Alexander (2012): Trade Liberalization and Welfare Inequality: A Demand-Based Approach. In: Scandinavian Journal of Economics, Vol. 114, No. 4: pp. 1296-1317|
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There is strong evidence suggesting that different income groups consume different bundles of goods. Hence, trade liberalization can affect welfare inequality via changes in the relative prices of goods consumed by different income groups (the price effect). In this paper, I develop a framework that enables us to explore the role of the price effect in determining welfare inequality. I find that trade liberalization does benefit some income classes more than others. In particular, I show that the relative welfare of the rich with respect to that of the poor has a hump shape as a function of trade costs.
Economics > Chairs > Chair of International Economics
|Subjects:||300 Social sciences > 330 Economics|
|Deposited On:||15. Apr 2014 08:52|
|Last Modified:||29. Apr 2016 09:16|
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Trade Liberalization and Welfare Inequality: a Demand-Based Approach. (deposited 30. Apr 2010 21:37)
- Trade Liberalization and Welfare Inequality: A Demand-Based Approach. (deposited 15. Apr 2014 08:52) [Currently Displayed]