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Transferable Licenses vs. Nontransferable Licences: What Is the Difference?

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Author Info

  • Krishna, K.
  • Tan, L.H.

Abstract

This paper questions the presumption that transferable quota licenses are worth more and result in higher welfare. We show that the price of a transferable license will tend to be higher than of its nontransferable counterpart only if the underlying quota is quite restrictive.

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Bibliographic Info

Paper provided by Pennsylvania State - Department of Economics in its series Papers with number 2-96-2.

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Length: 32 pages
Date of creation: 1996
Date of revision:
Handle: RePEc:fth:pensta:2-96-2

Contact details of provider:
Postal: PENNSYLVANIA STATE UNIVERSITY, DEPARTMENT OF ECONOMICS, UNIVERSITY PARK PENNSYLVANIA 16802 U.S.A.
Phone: (814)865-1456
Fax: (814)863-4775
Web page: http://econ.la.psu.edu/
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Related research

Keywords: ENTERPRISES; PRODUCTION;

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Cited by:
  1. Barbara J. Spencer, 1996. "Quota Licenses for Imported Capital Equipment: Could Bureaucrats Ever DoBetter than the Market?," NBER Working Papers 5695, National Bureau of Economic Research, Inc.

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