EXPLAINING THE DISTRIBUTION OF QUOTA RENTS FROM US CHEESE IMPORTS

Ellen Hornig, Richard N. Boisvert and David Blandford

Australian Journal of Agricultural Economics, 1990, vol. 34, issue 01, 20

Abstract: A theoretical model is outlined to illustrate how rents are generated from import quotas. The model is used to estimate rents from US cheese import quotas; rents are substantial. Relative rent capture by importers and exporters is explained by estimating an industrial organisation-type model. Unequal market power is important in explaining the distribution of rents between importers and exporters. Exporters tend to maintain price-cost margins and let importers capture a larger share as rent size increases.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Date: 1990
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ajaeau:22500

DOI: 10.22004/ag.econ.22500

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