Home > Term: linear cut
linear cut
A reduction in tariffs in which the size of the reduction is linearly related to the initial size of the tariff: %t = a + bt, where %t is the percent reduction in the tariff, t is the initial tariff, and a,b are constants. The simplest linear cut reduces all tariffs by the same percentage. Contrasts with the Swiss Formula.
- Part of Speech: noun
- Industry/Domain: Economy
- Category: International economics
- Company: University of Michigan
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Creator
- Noroc
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