Quotas, Alternative Technologies, and Immiserization

David A. Hennessy

Staff General Research Papers from Iowa State University, Department of Economics

Abstract: This paper studies the relationships between technical change and welfare under a production quota regime. The conditions for producer impoverishment and quota owner impoverishment under technical change are identified. Whether the relative efficiency of a marketable quota regime is robust to the choice of technologies is also considered, as is the immiserization motive for banning a technology. The paper demonstrates that two or more technologies may exist in equilibrium and that the adoption of a technology may depend on the marketability of quota.

Date: 1995-07-01
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Published in Canadian Journal of Agricultural Economics, July 1995, vol. 43, pp. 203-208

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Persistent link: http://EconPapers.repec.org/RePEc:isu:genres:5079

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