Trade policy with endogenous entry revisited

A-Tier
Journal: Journal of International Economics
Year: 2010
Volume: 80
Issue: 2
Pages: 271-279

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

This paper revisits the effects of tariffs and quotas in a competitive setting where three results are thought to hold. These are: that quotas are equivalent to specific tariffs, the form of tariffs--specific or ad valorem--does not matter, and that the way in which a quota is allocated has no real effects as it only affects the allocation of rents, not their size. We show that all three of these results are false when entry/exit is endogenous. Equivalence holds only if the initial level of entry is set at the long-run level under the quota.

Technical Details

RePEc Handle
repec:eee:inecon:v:80:y:2010:i:2:p:271-279
Journal Field
International
Author Count
2
Added to Database
2026-01-25