International Externalities in the Use of Domestic Policies to Redistribute Income
A1.159 WP 405
29 Pages Posted: 3 Mar 1998
Date Written: 1997
Abstract
Policies to redistribute income between high- and low-income groups are well known to distort factor supply decisions and thereby to generate deadweight losses incidental to income redistribution. This paper examines the effects that these same distortions may also have on factor supplies themselves, and thus on the implied patterns of production and international trade.
JEL Classification: F11, D33
Suggested Citation: Suggested Citation
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