Income Distribution and Labor Market Effects of Austrian pre- and post-Tokyo Round Tariff Protection

Abstract

This paper argues that focusing on short-run income distribution effects of tariffs within a specific factors model provides a much better rationale for the calculation of effective rates of protexction than does the traditional focus on long-run resource reallocation. It shows how factor price and labor market effects can be calculated from effective rates of protection, if factor specificity is introduced. Along these lines, the paper also presents some empirical results for Austrian pre- and post-Tokyo-round tariff protection.