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The Effects of Periodic Quotas Limiting the Stock of Imports of Durables

Gérard Gaudet () and Stephen Salant ()

Cahiers de recherche from Universite de Montreal, Departement de sciences economiques

Abstract: Analyses of trade quotas typically assume that the quota restricts the flow of some nondurable good. Many real-world quotas, however, restrict the stock of durable imports. We consider the cases where (1) anyone is free to export against such quotas and where (2) only those allocated portions of the total quota are free to export against such quotas. Recent econometric investigations of such quotas have focused on the price of the durable as an indicator of tightness induced by the quota. We show why this is an inappropriate indicator and suggest alternatives.

Keywords: imrt quotas; voluntary exrt restraints; immigration quotas; durable goods; sculative attacks (search for similar items in EconPapers)
Pages: 23 pages
Date: 2002
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Journal Article: The effects of periodic quotas limiting the stock of imports of durables (2003) Downloads
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