Smuggling and welfare in a Ricardo‐Viner economy
Mary E. Lovely
(The Maxwell School, Syracuse University, Syracuse, New York, USA)
Douglas Nelson
(Murphy Institute of Political Economy, Tulane University, New Orleans, Louisiana, USA)
8310
Abstract
Analyses smuggling through legal entry points in the context of a Ricardo‐Viner (RV) economy. Posits that smuggling will improve welfare if the benefits of a reduced domestic price distortion exceed the resource cost of smuggling. Strengthening of anti‐smuggling activity need not improve welfare if it induces the devotion of additional resources to activities designed to reduce detection.
Keywords
Citation
Lovely, M.E. and Nelson, D. (1995), "Smuggling and welfare in a Ricardo‐Viner economy", Journal of Economic Studies, Vol. 22 No. 6, pp. 26-45. https://doi.org/10.1108/01443589510099039
Publisher
:MCB UP Ltd
Copyright © 1995, MCB UP Limited