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Egger, Peter ; Larch, Mario:
Tariff Evasion Effects in Quantitative General Equilibrium.
In: Economics Letters.
Bd. 116
(2012)
Heft 2
.
- S. 262-264.
ISSN 0165-1765
DOI: https://doi.org/10.1016/j.econlet.2012.03.005
Abstract
One consequence of tariff evasion is that a country’s average statutory import tariff rate deviates from the average applied tariff rate. We deliver an approach to estimate the average evasion rate in multi-country general equilibrium. We find evidence of significant average tariff evasion which leads to downward-biased estimates of the elasticity-of-substitution parameter in new trade theory models and associated upward-biased comparative static welfare effects of trade liberalization.