Skip navigation
Skip navigation

On optimal second-best trade intervention in the presence of a domestic divergence

Britten-Jones, Mark; Nettle, Richard S.; Anderson, Kym


When a domestic divergence such as an externality is associated with the production (or consumption) of a good, the optimal first-best intervention typically is a production (or consumption) tax-cum-subsidy (Meade 1955; Bhagwati and Ramaswami 1963; Johnson 1965). Sometimes this first-best policy instrument cannot be used, perhaps because the government dislikes explicit subsidies for political reasons or because of high costs of raising or dispersing government revenue. In extreme cases the...[Show more]

CollectionsANU Research Publications
Date published: 1987-12
Type: Journal article
Source: Australian Economic Papers
DOI: 10.1111/j.1467-8454.1987.tb00513.x


There are no files associated with this item.

Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.

Updated:  20 July 2017/ Responsible Officer:  University Librarian/ Page Contact:  Library Systems & Web Coordinator