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Trade Liberalization, Poverty and Efficient Equity (2001)
| Venue: | Journal of Development Economics |
| Citations: | 22 - 7 self |
BibTeX
@ARTICLE{Harrison01tradeliberalization,,
author = {Glenn W. Harrison and Thomas F. Rutherford and David G. Tarr},
title = {Trade Liberalization, Poverty and Efficient Equity},
journal = {Journal of Development Economics},
year = {2001},
volume = {71},
pages = {97--128}
}
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Abstract
Even if trade liberalization results in the aggregate welfare gains over all households, it is possible that the poorest households could lose. Is it possible to undertake the reform in such a way that ensures that the poor will not lose? We illustrate two approaches that might be used to design a trade liberalization in Turkey that meets these equity goals. The first approach uses direct compensation to losers. The second approach uses limited policy reform, where exceptions to the across-the-board reform are chosen so as to meet the equity goal. In each case we map out some of the efficiency costs of attaining these equity goals, so as to inform policy makers about the least cost way of attaining them. # The views expressed are those of the authors and do not necessarily reflect those of the World Bank or its Executive Directors. Harrison is Dewey H. Johnson Professor of Economics, The Moore School of Business, University of South Carolina (HARRISON@MOORE.SC.EDU). Tarr is Lead Econo...
Keyphrases
trade liberalization equity goal efficient equity across-the-board reform harrison moore efficiency cost moore school world bank cost way lead econo first approach liberalization result johnson professor executive director aggregate welfare gain south carolina direct compensation policy maker
