01721cas a2200241 a 4500 AALejournalIMF008324 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451853025 1018-5941 BD-DhAAL BD-DhAAL Feltenstein, Andrew. Tax Policy and Trade Liberalization : An Application to Mexico / Andrew Feltenstein. Washington, D.C. : International Monetary Fund, 1992. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We construct a dynamic general equilibrium model of an open economy and use it to examine issues of trade liberalization in Mexico. In particular, we consider the fiscal implications of quotas and tariffs and, accordingly, their removal. We show that, in the short run, there may be negative revenue effects from tariff liberalization, so that it may be necessary to raise domestic taxes to compensate for the tariff reduction. We also show that these results are highly sensitive to behavioral shifts in exports. Since such shifts are quite likely given the nature of the trade reform currently being undertaken, it is important that we qualify our results accordingly. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1992/108 Full text available on IMF http://elibrary.imf.org/view/journals/001/1992/108/001.1992.issue-108-en.xml IMF e-Library