PERFORMANCE CONTINGENT PROTECTION* Journal Article

Overview

abstract

• In this paper we ask how to construct a tariff or quota schedule which depends on the behavior of a domestic monopsonistic monopolist in order to achieve the best tradeoff between two objectives of a government. We consider various political and economic tradeoffs which could face the policy maker: aggregate welfare versus industry profits, output and imports; and trade barrier revenue versus industry profits and domestic price. In all cases considered, performance contingent protection which takes the form either of a tariff which depends on domestic output or a quota which depends on the price charged is generally superior to a fixed tariff or quota and is sufficient to achieve optimality.

CU Boulder Authors

• Kaempfer, William H

publication date

• November 1, 1989

has restriction

• closed

Date in CU Experts

• July 10, 2014 10:24 AM

Full Author List

• Kaempfer WH; Tower E; Willett TD

author count

• 3

published in

• Economics and Politics 

Other Profiles

International Standard Serial Number (ISSN)

• 0954-1985

Electronic International Standard Serial Number (EISSN)

• 1468-0343

Digital Object Identifier (DOI)

• https://doi.org/10.1111/j.1468-0343.1989.tb00017.x

Additional Document Info

start page

• 261

end page

• 275

volume

• 1

issue

• 3