[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/cje/issued/v23y1990i2p348-56.html
   My bibliography  Save this article

Tariffs and the Current Account: The Role of Initial Distortions

Author

Listed:
  • Jonathan D. Ostry
Abstract
From an initial position of laissez-faire, temporary tariffs have been shown to improve the current account. However, if tariffs are initially positive (as in many actual economies), temporary tariffs will magnify an existing distortion and therefore lower real income during protectionist periods. Optimizing agents may wish to smooth the path of consumption relative to income by foreign borrowing. If the intertemporal elasticity of substitution is sufficiently low, temporary tariffs may actually worsen the current account.

Suggested Citation

  • Jonathan D. Ostry, 1990. "Tariffs and the Current Account: The Role of Initial Distortions," Canadian Journal of Economics, Canadian Economics Association, vol. 23(2), pages 348-356, May.
    • Handle: RePEc:cje:issued:v:23:y:1990:i:2:p:348-56
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0008-4085%28199005%2923%3A2%3C348%3ATATCAT%3E2.0.CO%3B2-R
    Download Restriction: only available to JSTOR subscribers
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lone Christiansen & Alessandro Prati & Luca Antonio Ricci & Thierry Tressel, 2010. "External Balance in Low-Income Countries," NBER Chapters, in: NBER International Seminar on Macroeconomics 2009, pages 265-322, National Bureau of Economic Research, Inc.
    2. Arman Mansoorian & Simon Neaime, 2000. "Habits and Durability in Consumption, and the Effects of Tariff Protection," Open Economies Review, Springer, vol. 11(3), pages 195-204, July.
    3. Shinsuke Ikeda, 2003. "Tariffs, Time Preference, and the Current Account under Weakly Nonseparable Preferences," Review of International Economics, Wiley Blackwell, vol. 11(1), pages 101-113, February.
    4. Mansoorian, Arman & Mohsin, Mohammed, 2010. "On the employment, investment, and current account effects of trade liberalizations with durability in consumption," The North American Journal of Economics and Finance, Elsevier, vol. 21(3), pages 228-240, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cje:issued:v:23:y:1990:i:2:p:348-56. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prof. Werner Antweiler (email available below). General contact details of provider: https://edirc.repec.org/data/ceaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.