Timing and duration of reforms /
This dissertation discusses the timing and duration of
| Main Author: | |
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| Format: | Thesis Book |
| Language: | English |
| Published: |
[Place of publication not identified] :
[publisher not identified] ;
1994.
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| Subjects: | |
| Online Access: | http://proxy.library.tamu.edu/login?url=http://proquest.umi.com/pqdweb?did=741945261&sid=1&Fmt=2&clientId=2945&RQT=309&VName=PQD |
| Summary: | This dissertation discusses the timing and duration of reforms in the particular case of trade liberalization. First, we compare two policy programs in the removal of a tariff: "shock", which is an abrupt and immediate removal of the tariff, and "gradualism", which removes the tariff slowly over a defined period of time. We show that "shock" is a superior program since "gradualism" , per se, introduces a distortion in the transition. Second, we present an alternative specification of a gradual reform, as a two-stage stepwise change of the tariff rather than a smooth decrease. This formulation allows to formulate a more general model, which can be used to analyze, as specific cases, not only the question of shock versus gradualism but a large array of policy sequences. In particular, we show that the fundamentals of both the "shock" versus "gradualism" and "transitory" versus "permanent" policy comparisons are the same. Third, we examine trade liberalization in the presence of adjustment costs governing factor movements between two industries. We show that unless there are externalities in the factor adjustment costs, a "shock" removal of the tariff remains Pareto superior. |
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| Item Description: | Vita. "Major Subject: Economics". |
| Physical Description: | vii, 75 leaves : illustrations ; 28 cm. Issued also on microfiche from University Microfilms Inc. |
| Bibliography: | Includes bibliographical references. |