Such
ad valorem tariff equivalents are an essential component in allowing Kee, Nicita, and Olarreaga (2009) to generate estimates of trade restrictiveness indices.
This incentive to ship high valued products is not present under an
ad valorem tariff. In addition, under the specifics of the SLA, there were options for the secondary manufacturing sector to further process lumber into products not subject to the quota (also true under the tariff).
The negative impact of specific tariffs (more common since the Uruguay Round ended) offset the benefits of lower
ad valorem tariffs.
It has been suggested to us that the purpose of the Confederate Constitution's tariff clause was to establish a uniform,
ad valorem tariff rate for all imports, thereby blunting rent-seeking incentives.
This paper also investigates the potential effects on OPEC's power of monopoly from
ad valorem tariff, noncartel output, and a switch to alternative fuels.
Would it make sense to use an
ad valorem tariff rather than a specific one?