DP2044 The Mercantilist Index of Trade Policy
|Author(s):||James E Anderson, J Peter Neary|
|Publication Date:||December 1998|
|Keyword(s):||International trade policy, Quotas, Tariffs, trade liberalisation, Trade Restrictiveness Index|
|Programme Areas:||International Trade and Regional Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=2044|
This paper develops and characterizes an index of trade policy restrictiveness defined as the uniform tariff equivalent which maintains the same volume of trade as a given set of tariffs, quotas, and domestic taxes and subsidies. We relate this volume-equivalent index to the Trade Restrictiveness Index, a welfare-equivalent measure, and relate changes in both indexes to changes in the generalized mean and variance of the tariff schedule. Applications to international cross-section and time-series comparisons of trade policy show that the new index frequently gives a very different picture than do standard indexes.