The Theory and Measurement of Producer Response under Quotas.

A-Tier
Journal: Review of Economics and Statistics
Year: 1993
Volume: 75
Issue: 1
Pages: 97-106

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

Tobin and Houthakker's work on consumer behavior under quantity rationing has been extended by many authors, especial ly through the use of duality theory. This paper uses duality theory to extend the work on demand theory under rationing to the case of producer behavior under quotas. These results permit estimation of otherwise unobservable market supply and demand structures. The structure of the farm economy operating under a tobacco quota system is estimated, and the theory is utilized to infer that the supply elasticity of tobacco would be about 7.0 if the quotas were removed. Estimates such as this are not normally attainable without the theor y outlined here, even though they are essential for the evaluation of policy changes. Copyright 1993 by MIT Press.

Technical Details

RePEc Handle
repec:tpr:restat:v:75:y:1993:i:1:p:97-106
Journal Field
General
Author Count
2
Added to Database
2026-01-25