Ian Parry


Fellow, Resources for the Future, USA

The Costs of Restrictive Trade Policies in the Presence of Factor Tax Distortions


This paper uses a numerical general equilibrium model to examine the quantitative importance of pre-existing factor tax distortions for the welfare effects of tariffs and import quotas. The presence of preexisting taxes can greatly raise the costs of these policies, possibly by over several hundred percent. For a tariff much ...

Should Alcohol Taxes Be Raised?

Although excise taxes on beer, wine, and spirits raise about $15 billion a year in revenue for federal and state governments, current alcohol tax rates in the United States are low by historical standards. In 1980, alcohol taxes represented about 22 percent of the pre-tax price of alcohol, whereas now, ...

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