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- W1966842004 abstract "The choice between tariffs and quotas recently has been reexamined using formal political economy models. Increased government use of quantitative trade restrictions has motivated this development since received economic theory suggests that tariffs are generally preferred. The article models the choice of protective instrument when producer rent and commercial policy revenue are highly substitutable to the policymaker and where the domestic industry is composed of a single firm. This is compatible with a stylized developing economy in which rent-seeking and revenue-seeking behavior are both present, or in which a ruling elite maximizes income subject to constraints. Under these assumptions, quotas prove generally superior to tariffs since a target level of rents plus revenues can be achieved at a lower domestic price using a quota. In this model, outside pressure (from the World Bank, for instance) to convert quotas into tariffs (tariffication) will be resisted." @default.
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- W1966842004 date "1993-01-01" @default.
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- W1966842004 title "The choice between tariffs and quotas as instruments of protection under autocracy" @default.
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- W1966842004 doi "https://doi.org/10.1016/1062-9408(93)90015-w" @default.
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