The Lerner symmetry theorem, in international trade theory, states that an ad valorem tariff imposed on imports has, under the theorem's general equilibrium assumptions, the same economic effect as an equivalent tax placed on exports. The result relies on a model of an economy with perfect competition, no transaction costs, balanced trade, and fully flexible prices and exchange rates, and it is named for the economist Abba Lerner.
Facts
Statementan ad valorem import tariff will have the same effects as an equivalent export tax 1 Classification
Statement FormCharacterization Theorem 1 Connections
Sources
1. Lerner symmetry theorem - Wikipedia
Introduction
an ad valorem import tariff will have the same effects as an equivalent export tax
History section
The theorem was developed by economist Abba P. Lerner in 1936.
In Group: International Trade Theory, Lead paragraph
The Lerner symmetry theorem is a theorem in international trade theory, which states that an ad valorem import tariff will have the same effects as an equivalent export tax.
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