Ranking the optimum tariff and the maximum revenue tariff. Journal of |International Economics, 7(1), 73-79.
Ranking the optimum tariff and the maximum revenue tariff in vertically related markets.
Its elitist image keeps interest relatively low among the general public, while a 23.5 per cent revenue tariff
prevents the industry from developing more affordable public courses.
Their growth is paralyzed: whilst they are mere suburbs of Northern cities." (1) When the Confederacy formulated its new Constitution in April 1861, it reinforced its free trade image by prohibiting "any duties or taxes on importations from foreign nations to be laid to promote or foster any branch of industry." With the passage of the Confederate revenue tariff of 15 percent the following summer--significantly lower than U.S.
Virginia secessionists eagerly endorsed a Confederate "revenue tariff" that also would provide "incidental" protection, giving manufacturers in the Old Dominion an important advantage over Northern competitors.
This paper intends to show that growth will not necessarily increase the tariff revenue of a country, assuming that the country always imposes a maximum revenue tariff. If there is an increase in import demand after growth, the maximum tariff revenue will increase.
The purpose of this paper is to find out if the above proposition also holds for the maximum revenue tariff. In other words, this paper intends to find out if the tariff revenue of a country will always increase after growth if the country always imposes a maximum revenue tariff (2).
Research findings that show significant gains in manufacturing activity before 1880 are consistent with a belief that the revenue tariff
, struck at various levels from 15 to 17.5 percent during the 1850s, 1860s, and early 1870s, afforded sufficient protection (together with natural factors like transport costs) to promote Canadian manufacturing growth.
tariffs were unconstitutional; only revenue tariffs
were constitutionally sanctioned.
But as I have argued ("The Myth of Free Trade Britain and Fortress France: Tariffs and Trade in the Nineteenth Century," Journal of Economic History 51 [March 1991]: 23-46) and subsequent research has revealed, the distinction between revenue tariffs
and protective tariffs is not easy to make.