Captain Haddock wrote:It's complicated ..................
(Link to WTO document)
Thank you for that - honestly!
OK, so there are consequences to market intervention which can be overlooked; indeed, to non-intervention also - eg. the increase in gas prices for UK consumers produces a welcome stimulation to the loft insulation and sheep -farming industries. However, when I read 'the literature on optimal export taxation argues that if domestic firms are perfectly competitive in the domestic market the optimal export tax is equal to the inverse of the absolute value of the world price elasticity of export demand for the commodity concerned ', I thought of paralysis by analysis and that the author ought to get out more.
