
GATT Rulings, Excise Reforms and Trade Patterns: The Alcoholic Beverages Industry in Canada
GATT Rulings, Excise Reforms and Trade Patterns: The Alcoholic Beverages Industry in Canada
- Ian J. Irvine William A. Sims
- 세종대학교 경제통합연구소
- Journal of Economic Integration
- 제8권 제1호
- 등재여부 : KCI등재
- 1993.03
- 68 - 88 (21 pages)
This paper uses a disaggregated micro-model of the alcoholic beverage sector to investigate reforms of discriminatory pricing practices attributable to differential provincial markups and federal excise levies in Canada. The reform of markups has been demanded in a recent GATT ruling. We find that major changes in the structure of this industry could follow and that both provincial and federal government tax revenues respond to measures initiated by the other level of government. A cooperative tax reform strategy, which leaves each level of government with unchanged revenues, is then modeled. This entails major changes in trade patterns, relative outputs and producer revenues.