EconPapers    
Economics at your fingertips  
 

Trade Policy with Heterogeneous Traders: Do Quotas Get a Bum Rap?

Kala Krishna () and Ling Hui Tan ()

No 13040, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper considers the effects of trade policy--tariffs and quotas--when importing is done by competitive traders who are identical ex ante but differ ex post. We show that the standard equivalence results no longer hold and the conventional ranking of tariffs and quotas is turned on its head: quotas are not as bad for welfare as previously believed, while tariffs may restrict trade by more than originally intended. Furthermore, the allocation of property rights (quota licenses) has real effects beyond the distribution of rents; this, in turn, has implications for the effects of corruption on welfare.

JEL-codes: F1 F18 (search for similar items in EconPapers)
Date: 2007-04
Note: ITI
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Published as Kala Krishna & Ling Hui Tan, 2007. "Trade Policy with Heterogeneous Traders: Do Quotas Get a Bum Rap?," IMF Working Papers, vol 07(92).

Downloads: (external link)
http://www.nber.org/papers/w13040.pdf (application/pdf)

Related works:
Working Paper: Trade Policy with Heterogeneous Traders; Do Quotas Get a Bum Rap? (2007) Downloads
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:nbr:nberwo:13040

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w13040

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2018-06-18
Handle: RePEc:nbr:nberwo:13040