Abstract:
This study combines a general
equilibrium methodology with a significant degree
of disaggregation by using the 83 sector
United States input-output table and a linear programming
approach3 to assess the impact of the
1967 structure of U.S. tariffs and quotas on the
American functional income distribution. We
conclude that when all factors are perfectly
mobile, the effects on aggregate real income and
its distribution are much greater than previously
found, and these effects are highly sensitive to
the degree of mobility assumed. Section II presents
the critical assumptions of the model, and
contrasts them with those of the other models.
Section III contains a discussion of the data, and
section IV draws our conclusions.
