Arbeitspapier
Optimal Income Transfers and Tariffs.
This paper investigates the optimality of international income transfers in a two-country model in which each country engages in non-cooperative trade policy behaviour. It is shown that unconditional income transfers can never be optimal for the donor country, which not only suffers the loss of income but is harmed as the recipient responds optimally by raising tariffs. It is further shown that it is possible for the donor to attach carefully designed conditionality rules to the aid package to ensure that the recipient will agree to the package and that the donor's welfare is improved. In fact, the use of conditional income transfers is shown to result in a Pareto efficient equilibrium.
- Language
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Englisch
- Bibliographic citation
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Series: EPRU Working Paper Series ; No. 1997-06
- Classification
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Wirtschaft
- Event
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Geistige Schöpfung
- (who)
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Lahiri, Sajal
Raimondos-Møller, Pascalis
Wong, Kar-yiu
Woodland, Alan D.
- Event
-
Veröffentlichung
- (who)
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University of Copenhagen, Economic Policy Research Unit (EPRU)
- (where)
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Copenhagen
- (when)
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1997
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Lahiri, Sajal
- Raimondos-Møller, Pascalis
- Wong, Kar-yiu
- Woodland, Alan D.
- University of Copenhagen, Economic Policy Research Unit (EPRU)
Time of origin
- 1997
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