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Second Best Redistributive Policies : the Case of International Trade

Author

Listed:
  • Guesnerie, R.
Abstract
The paper presents a brief review of recent work that focuses on the normative economics of international trade. In an Heckscher Ohlin - like economy, with skilled and unskilled workers, the available redistributive tools, (that include income taxation) are not powerful enough to allow the separation of efficiency and equity issues and "production efficiency" is no longer desirable. At a social optimum that calls for redistribution towards the unskilled workers, the social value of the unskilled intensive good is necessarily smaller than its production price. This finding allows to unify existing results and suggests conjectures.

Suggested Citation

  • Guesnerie, R., 2000. "Second Best Redistributive Policies : the Case of International Trade," DELTA Working Papers 2000-21, DELTA (Ecole normale supérieure).
    • Handle: RePEc:del:abcdef:2000-21
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    File URL: http://www.delta.ens.fr/abstracts/wp200021.pdf
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    Citations

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    Cited by:

    1. Roger Guesnerie, 2006. "De l'utilité du calcul économique public," Economie & Prévision, La Documentation Française, vol. 0(4), pages 1-14.
    2. Philippe Bontems & Estelle Gozlan, 2018. "Trade, environment, and income inequality: An optimal taxation approach," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 20(4), pages 557-581, August.
    3. repec:hal:wpspec:info:hdl:2441/3201 is not listed on IDEAS
    4. Keuschnigg, Christian & Ribi, Evelyn, 2009. "Outsourcing, unemployment and welfare policy," Journal of International Economics, Elsevier, vol. 78(1), pages 168-176, June.
    5. Thomas Gaube, 2005. "Income Taxation, Endogenous Factor Prices and Production Efficiency," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(2), pages 335-352, June.
    6. repec:hal:spmain:info:hdl:2441/3201 is not listed on IDEAS
    7. repec:spo:wpecon:info:hdl:2441/3201 is not listed on IDEAS
    8. Davidson, Carl & Matusz, Steven J. & Nelson, Douglas R., 2007. "Can compensation save free trade?," Journal of International Economics, Elsevier, vol. 71(1), pages 167-186, March.
    9. Guillaume Daudin & Jean-Luc Gaffard & Francesco Saraceno, 2007. "Ordre et désordre dans l'échange international," SciencePo Working papers Main hal-03459556, HAL.
    10. Hisahiro Naito, 2006. "Redistribution, production inefficiency and decentralized efficiency," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 13(5), pages 625-640, September.
    11. Martimort, David & Verdier, Thierry, 2009. "International Trade with Domestic Regulation under Asymmetric Information: A Simple General Equilibrium Approach," IDEI Working Papers 223, Institut d'Économie Industrielle (IDEI), Toulouse, revised Jan 2010.
    12. Hisahiro Naito, 2016. "Optimal Shadow Prices for the Public Sector in the Presence of a Non-linear Income Tax System in an Open Economy," Tsukuba Economics Working Papers 2016-003, Faculty of Humanities and Social Sciences, University of Tsukuba.
    13. repec:spo:wpmain:info:hdl:2441/3201 is not listed on IDEAS

    More about this item

    Keywords

    DISTRIBUTION ; INTERNATIONAL TRADE ; WORKERS;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F10 - International Economics - - Trade - - - General

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