Tariffs versus quotas with endogenous quality

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Abstract

This paper analyzes the effects and desirability of tariffs, quotas and quality controls, when the quality of the imported good is endogenous, and the foreign producer is a monopolist. A crucial determinant of the direction of these effects is shown to be the valuation of increments in quality by the marginal consumer, relative to that of all consumers on average. A way of comparing infinitesimal equivalent policies is developed and used to compare import equivalent policies.

Original languageEnglish (US)
Pages (from-to)97-112
Number of pages16
JournalJournal of International Economics
Volume23
Issue number1-2
DOIs
StatePublished - Jan 1 1987

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

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