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Explaining The Distribution Of Quota Rents From Us Cheese Imports

Author

Listed:
  • Hornig, Ellen
  • Boisvert, Richard N.
  • Blandford, David

Abstract

A theoretical model is outlined to illustrate how rents are generated from import quotas. The model is used to estimate rents from US cheese import quotas; rents are substantial. Relative rent capture by importers and exporters is explained by estimating an industrial organisation-type model. Unequal market power is important in explaining the distribution of rents between importers and exporters. Exporters tend to maintain price-cost margins and let importers capture a larger share as rent size increases.

Suggested Citation

  • Hornig, Ellen & Boisvert, Richard N. & Blandford, David, 1990. "Explaining The Distribution Of Quota Rents From Us Cheese Imports," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 34(1), pages 1-20, April.
    • Handle: RePEc:ags:ajaeau:22500
    DOI: 10.22004/ag.econ.22500
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    References listed on IDEAS

    as
    1. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
    2. Sampson, Gary P & Snape, Richard H, 1980. "Effects of the EEC's Variable Import Levies," Journal of Political Economy, University of Chicago Press, vol. 88(5), pages 1026-1040, October.
    3. LaFrance, Vincent A, 1979. "The Impact of Buyer Concentration-An Extension," The Review of Economics and Statistics, MIT Press, vol. 61(3), pages 475-476, August.
    4. Anderson, James E, 1985. "The Relative Inefficiency of Quotas: The Cheese Case," American Economic Review, American Economic Association, vol. 75(1), pages 178-190, March.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. de Gorter, Harry & Abbott, Philip C. & Barichello, Richard R. & Boughner, Devry S. & Bureau, Jean-Christophe & Choi, Jung-Sup & Coleman, Jonathan R. & Herrmann, Roland & Kramb, Marc Christopher & Shel, 2001. "Issues In Reforming Tariff-Rate Import Quotas In The Agreement On Agriculture In The Wto," Commissioned Papers 14617, International Agricultural Trade Research Consortium.

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