Quality standards for used durables: An indirect subsidy?

A-Tier
Journal: Journal of International Economics
Year: 2008
Volume: 75
Issue: 2
Pages: 268-282

Authors (2)

Clerides, Sofronis (not in RePEc) Hadjiyiannis, Costas (University of Cyprus)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

We construct a theoretical framework to study the impact of quality standards for used durable goods on trade [fl]ows, pro[fi]ts and consumer welfare. We show that asymmetric quality standards generate trade in used goods from high- to low-standard countries while at the same time reducing trade in new goods. Producers in the exporting country bene[fi]t from this change while consumers lose. In the importing country consumers are better off but domestic industry is hurt. These [fi]ndings suggest that quality standards on used goods may be a powerful policy tool whose use should be monitored by the WTO.

Technical Details

RePEc Handle
repec:eee:inecon:v:75:y:2008:i:2:p:268-282
Journal Field
International
Author Count
2
Added to Database
2026-01-25