Construct · 1 fields · 1 citations

theory of domestic distortions: a standalone construct

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International trade

result that a domestic market distortion is best corrected by a domestic tax or subsidy aimed at its source rather than by trade policy.

In international trade, theory of domestic distortions refers to result that a domestic market distortion is best corrected by a domestic tax or subsidy aimed at its source rather than by trade policy. This meaning comes from Bhagwati (1963) in Journal of Political Economy.[1]

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Nearby constructs

distortion4 fields · 7 citationsjingle · one word, four constructs market3 fields · 5 citationsjingle · one word, three constructs policy2 fields · 4 citationsjingle · one word, two constructs

References

Bhagwati, J., & Ramaswami, V. K. (1963). Domestic Distortions, Tariffs and the Theory of Optimum Subsidy. Journal of Political Economy, 71(1), 44-50. https://doi.org/10.1086/258733

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