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An Allais Measure of Production Sector Waste Due to Quotas

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Author Info
Lilyan E. Fulginiti (University of Nebraska)
Richard K. Perrin (University of Nebraska)

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Abstract

In this paper we adapt a partial equilibrium approach of Allais and Diewert to measure the efficiency loss in the producing sector due to quotas. The measure of waste is the additional profits available due to reallocation subject to constraints that the welfare of persons and firms outside the sector is unaffected. An example is presented using the tobacco quota program in the U.S.

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File URL: http://129.3.20.41/eps/pe/papers/0502/0502017.pdf
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Publisher Info
Paper provided by EconWPA in its series Public Economics with number 0502017.

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Length: 10 pages
Date of creation: 28 Feb 2005
Date of revision:
Handle: RePEc:wpa:wuwppe:0502017

Note: Type of Document - pdf; pages: 10
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Web page: http://129.3.20.41

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Related research
Keywords: deadweight loss production sector quotas waste Allais

Find related papers by JEL classification:
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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  1. Sumner, Daniel A, 1981. "Measurement of Monopoly Behavior: An Application to the Cigarette Industry," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 1010-19, October. [Downloadable!] (restricted)
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