A cornerstone of the auction literature is the theory of"optimal auctions."'This theory uses mechanism design techniques to characterize, in general settings, the auction that maximizes the seller's expected revenues. One feature of the solution is that typically there is a conflict between the...

To study the effects of tariffs on gross domestic product (GDP), one needs import demand elasticities at the tariff line level that are consistent with GDP maximization. These do not exist. The authors modify Kohli's (1991) GDP function approach to estimate demand elasticities for 4,625 imported...

Domestic content requirements are regulations that mandate minimum percentages of domestic value-added, or domestic components for products sold within the country, or provide strong incentives to substitute domestic for imported inputs. The author developed a model to investigate the...

This report describes the results of simulating effects of U.S. macroeconomic policy on U.S. agriculture using the USAGMKTS model. The primary purpose for which the USAGMKTS model was developed is to determine the effects of potential changes in U.S. policy on the border prices of corn, sorghum,...

Antidumping actions by importing countries do not protect their consumers. What protects domestic consumers is competition. It is Korean consumers who are paying for the development of the Korean electronics industry, not consumers in the countries that import Korean goods. A key element of...

Economists and policymakers in the Soviet Union before its dissolution were concerned about the growth of the"ruble overhang."The concern was that the rationing of consumer goods evident in prior years had led to an excess of purchasing power in households. Price liberalization was expected to...

Primary commodity prices are subject to substantial export taxes in a large number of developing countries. The purpose of this paper is to determine the optimal export tax for major exporters of cocoa, tea, coffee, and natural rubber -- the primary commodities most heavily taxed by developing...

Venezuela's agricultural sector is heavily regulated and protected. As part of structural adjustment, the government is considering major reform of its agricultural trade policies. The strategy is to introduce competition into the economy by removing government price controls and liberalizing...

Inflation always has a monetary dimension, but managing inflation is not a simple question of monetary management. Other factors to contend with are the indexation process (including policies on wage and price controls), the level and financial composition of fiscal deficits, and supply...

Agricultural markets in Mexico, as elsewhere, are distorted by domestic subsidies as well as international trade policies. To measure domestic distortions in agriculture and compare them internationally, analysts have used"producer subsidy equivalent"(a production-share weighted average of...