Trade policy with heterogeneous traders: do quotas get a bum rap?, Issue 13040

Front Cover
This paper considers the effects of trade policy--tariffs and quotas--when importing is done by competitive traders who are identical ex ante but differ ex post. We show that the standard equivalence results no longer hold and the conventional ranking of tariffs and quotas is turned on its head: quotas are not as bad for welfare as previously believed, while tariffs may restrict trade by more than originally intended. Furthermore, the allocation of property rights (quota licenses) has real effects beyond the distribution of rents; this, in turn, has implications for the effects of corruption on welfare.

From inside the book

What people are saying - Write a review

We haven't found any reviews in the usual places.


Specific Tariffs
Ad Valorem Tariffs

1 other sections not shown

Other editions - View all

Common terms and phrases

Bibliographic information