The China-Raw Materials dispute recently arbitrated by the WTO opposed China as defendant to the US, the EU and Mexico as claimants on the somewhat unusual issue of export restrictions on natural resources. For the claimants, Chinese export restrictions on various raw materials, of which the...

While quotas can be expressed in tariff-equivalent terms and have identical economic effects under some conditions, they do not share the same welfare implications with tariffs in the presence of a piecemeal reform (second-best). In this paper we show that this non-welfare equivalence persists...

This paper compares the social welfare effects of tariffs and quotas as strategic trade policy instruments in an oligopolistic industry where the domestic market demand is uncertain and the policy is chosen before the uncertainty is resolved. The uncertain demand, once realized, is assumed to be...

This paper develops an efficiency theory of contingent trade policies. We model the competition for a domestic market between one domestic and one foreign firm as a pricing game under incomplete information about production costs. The cost distributions are asymmetric because the foreign firm...

This paper shows that governments have no incentive to introduce non-tariff barriers when they are free to set tariffs but they do when tariffs are determined cooperatively. We then show three results. First, with trade liberalization, there is a progression from using tariffs only to quotas,...

El propósito de este trabajo es evaluar los efectos del Acuerdo Comercial El Grupo de los Tres" (G-3) sobre el mercado automotriz colombiano.Asumiendo que la demanda se puede describir como un modelo de elección discreta, se desarrolla un modelo de equilibrio parcial para analizarla cuota de...

We provide a novel (and old) argument for the nonequivalence of tariffs and quotas, based on the famous paper by Hotelling (1931). Unlike tariffs, quantitative restrictions are inherently dynamic. As long as the foreign exporter earns positive marginal profits, he raises their present value by...

This paper develops a spatial duopoly model by taking land consumption and mobile households into consideration and examines the respective effects of a tariff and a quota on an open economy with various price conjectural variations (including Loschian, H-S and G-O competition). The main...

Quotas act as facilitating practices under price competition. Because they relax price competition, they may affect firms' quality choice in very specific ways. We analyze this issue by considering the following stage game: a domestic government chooses an import quota, then a domestic and a...