Shock versus gradualism in models of rational expectations : the case of trade liberalization /

Shock versus gradualism in models of rational expectations : the case of trade liberalization /

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Bibliographic Details
Author / Creator:	Auernheimer, Leonardo, 1936-
Imprint:	[Washington, D.C.] : International Monetary Fund, IMF Institute, ©1997.
Description:	1 online resource (20 pages) : illustrations
Language:	English
Series:	IMF working paper, 2227-8885 ; WP/97/122 IMF working paper ; WP/97/122.
Subject:	Commercial policy -- Econometric models. Free trade -- Econometric models. Tariff -- Econometric models. Rational expectations (Economic theory) -- Econometric models. Commercial policy -- Econometric models. Free trade -- Econometric models. Rational expectations (Economic theory) -- Econometric models. Tariff -- Econometric models.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12497754

Hidden Bibliographic Details
Other authors / contributors:	George, Susan Mary, 1960- IMF Institute.
ISBN:	1451899793 9781451899795 1462393292 9781462393299 1452729034 9781452729039 1282107623 9781282107625 9786613800978 661380097X
Notes:	Includes bibliographical references (page 17). Restrictions unspecified Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010. Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 English. digitized 2010 HathiTrust Digital Library committed to preserve Print version record.
Summary:	Annotation This paper provides a new argument for shock versus gradualism in the implementation of trade policies. In the simple context of a small open economy with rational expectations, we consider the comparative welfare effects of eliminating an import tariff either immediately as an unanticipated shock, or gradually over a preannounced length of time. the gradualist policy introduces a distortion in consumption-accumulation decisions and generates welfare costs. and if the gradual change is extended over too long a period, these costs may exceed the long-run benefits of liberalization.
Other form:	Print version: Auernheimer, Leonardo, 1936- Shock versus gradualism in models of rational expectations. [Washington, D.C.] : International Monetary Fund, IMF Institute, ©1997
Standard no.:	10.5089/9781451899795.001

Description
Summary:	This paper provides a new argument for "shock" versus "gradualism" in the implementation of trade policies. In the simple context of a small open economy with rational expectations, we consider the comparative welfare effects of eliminating an import tariff either immediately as an unanticipated shock, or gradually over a preannounced length of time. The gradualist policy introduces a distortion in consumption-accumulation decisions and generates welfare costs. And if the gradual change is extended over "too long" a period, these costs may exceed the long-run benefits of liberalization.
Physical Description:	1 online resource (20 pages) : illustrations
Format:	Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.
Bibliography:	Includes bibliographical references (page 17).
ISBN:	1451899793 9781451899795 1462393292 9781462393299 1452729034 9781452729039 1282107623 9781282107625 9786613800978 661380097X
ISSN:	2227-8885 ;