EXPLAINING THE DISTRIBUTION OF QUOTA RENTS FROM US CHEESE IMPORTS

Ellen Hornig, Richard N. Boisvert, David Blandford

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

A theoretical model is outlined to illustrate how rents are generated from import quotas. The model is used to estimate rents from US cheese import quotas; rents are substantial. Relative rent capture by importers and exporters is explained by estimating an industrial organisation‐type model. Unequal market power is important in explaining the distribution of rents between importers and exporters. Exporters tend to maintain price‐cost margins and let importers capture a larger share as rent size increases. 1990 The Australian Agricultural Economics Society

Original languageEnglish (US)
Pages (from-to)1-20
Number of pages20
JournalAustralian Journal of Agricultural Economics
Volume34
Issue number1
DOIs
StatePublished - Apr 1990

All Science Journal Classification (ASJC) codes

  • Agronomy and Crop Science
  • Environmental Science(all)
  • Earth and Planetary Sciences(all)

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