Smuggling and welfare in a Ricardo‐Viner economy

Mary E. Lovely; Douglas Nelson

doi:10.1108/01443589510099039

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Smuggling and welfare in a Ricardo‐Viner economy

Mary E. Lovely, Douglas Nelson

Journal of Economic Studies1995doi:10.1108/01443589510099039

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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.

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Mary E. Lovely#1 Douglas Nelson#2

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10.1007/bf02706100

10.1086/261104

10.2307/1882182

10.1086/259587

10.1016/0047-2727(73)90027-3

10.1016/b978-0-444-10581-3.50009-4

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10.2307/137604

10.1007/bf02706315

10.2307/1886004

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Smuggling and welfare in a Ricardo‐Viner economy

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