An Allais Measure of Production Sector Waste Due to Quotas

Lilyan Fulginiti () and Richard Perrin ()

Public Economics from EconWPA

Abstract: In this paper we adapt a partial equilibrium approach of Allais and Diewert to measure the efficiency loss in the producing sector due to quotas. The measure of waste is the additional profits available due to reallocation subject to constraints that the welfare of persons and firms outside the sector is unaffected. An example is presented using the tobacco quota program in the U.S.

Keywords: deadweight loss; production sector; quotas; waste; Allais (search for similar items in EconPapers)
JEL-codes: Q (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff
Date: 2005-02-28
Note: Type of Document - pdf; pages: 10
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwppe:0502017

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