Tariffs versus quotas in the presence of imperfect competition and cross-border externalities

Taiji Furusawa, Keisaku Higashida and Jota Ishikawa

Canadian Journal of Economics, 2004, vol. 37, issue 2, 445-458

Abstract: We consider trade policies intended to affect the production of a foreign monopolist that generates negative externalities. We derive the optimal tariff and optimal import quota and examine which policy measure should be used to maximize domestic welfare. We find that if the domestic government does not have full information on the foreign firm's production method and if cross-border externalities exist, import quotas are in some cases preferable to tariffs. Otherwise, however, tariffs are preferable to quotas.

JEL-codes: F13 F18 (search for similar items in EconPapers)
Date: 2004
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.jstor.org/stable/3696155 (text/html)
only available to JSTOR subscribers

Related works:
Journal Article: Tariffs versus quotas in the presence of imperfect competition and cross‐border externalities (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cje:issued:v:37:y:2004:i:2:p:445-458

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Zhiqi Chen

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().