http://www.loc.gov/mods/v3 http://www.loc.gov/standards/mods/v3/mods-3-2.xsd
Essays on tariffs and capital controls in intertemporal trade models
This dissertation analyzes the interaction and relative effects of a capital control and a tariff in a two-period, general-equilibrium framework. This issue is important because a country typically has more than one policy instrument at its disposal. Each instrument influences an agent's behavior in a different manner, so that the interaction of more than one instrument on prices, welfare and the current account warrants explanation This dissertation analyzes these issues in the framework of two separate models. The first model extends Adatn's and Greenwood's(1985) capital control model to include a first period tariff. Using this model, the dissertation analyzes the effects of a tariff (capital control) when the preexisting distortion is a capital control (tariff). It also examines the tradeoffs between tariffs and capital controls to maintain a constant level of welfare and similarly the case of maintaining a constant level of the capital account. Finally, it develops conditions under which a government can use a capital control and tariff to achieve a targeted capital control at the maximum level of welfare. The second model is an extension of Van Wijnbergen's(1987) tariff model to include a capital control. This model is a two-country, two-good, two-period real trade model. In this model, the dissertation analyzes the interaction of a capital control and a first period tariff on welfare, the current account and consumption, when each instrument is evaluated at a free trade and positive initial equilibrium level. It focuses on the additional income effects that the restrictions generate and how they affect prices, consumption, welfare and the current account. Since this model is a two country model, the existence of intertemporal and intratemporal feed back effects are analyzed also.
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