Although the key concept of a quota is simple – to set a limit on production – the market and welfare implications of operating a quota system are relatively complex. The purpose of the analysis reported in this paper is to address two aspects relevant to an evaluation of quota systems. First,...

Although the key concept of a quota is simple to set a limit on production the market and welfare implications of operating a quota system are relatively complex. The purpose of the analysis reported in this paper is to address two aspects relevant to an evaluation of quota systems. First, quota...