Optimal Trade Policies: An Application to the UK Fertilizer Market.

C-Tier
Journal: Oxford Economic Papers
Year: 1993
Volume: 45
Issue: 1
Pages: 118-29

Authors (2)

McCorriston, Steve (not in RePEc) Sheldon, Ian (Ohio State University)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper evaluates the trade policies introduced into the U.K. fertilizer market by the U.K. government and EC Commission in 1987. These policies are assessed in the context of theoretical developments in the analysis of trade policy where markets are imperfectly competitive. Specifically, optimal tariff and tariff-equivalent quota policies are derived. It is found that an optimal tariff policy would have resulted in the highest level of economic welfare, while a quota would have reduced welfare, the latter result being due to the effect of a quota on firms' behavior. Relative to these policies, the trade restrictions actually imposed were too restrictive and hence failed to maximize economic welfare. Copyright 1993 by Royal Economic Society.

Technical Details

RePEc Handle
repec:oup:oxecpp:v:45:y:1993:i:1:p:118-29
Journal Field
General
Author Count
2
Added to Database
2026-01-29