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Volume Quotas with Heterogeneous Product Categories

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  • I. GIBBS
  • V. KONOVALOV

Abstract

Volume quotas on imports are an important part of assistance packages afforded a number of major industries in Australia. Generally, quota is allocated to importers free of charge, although recently a proportion of quota for some product groups has been sold by tender. In this paper we compare the effects of volume quotas applied to heterogeneous product groups when allocated free of charge, by full tender sale and by a combination offender sale and free allocation. The analysis is undertaken for both competitive markets and in the case where importers have some market power.

Suggested Citation

  • I. Gibbs & V. Konovalov, 1984. "Volume Quotas with Heterogeneous Product Categories," The Economic Record, The Economic Society of Australia, vol. 60(3), pages 294-303, September.
    • Handle: RePEc:bla:ecorec:v:60:y:1984:i:3:p:294-303
    DOI: 10.1111/j.1475-4932.1984.tb00864.x
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    References listed on IDEAS

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    1. Rachel McCulloch, 1973. "When Are a Tariff and a Quota Equivalent:," Canadian Journal of Economics, Canadian Economics Association, vol. 6(4), pages 503-511, November.
    2. Corden, W. M., 1971. "The substitution problem in the theory of effective protection," Journal of International Economics, Elsevier, vol. 1(1), pages 37-57, February.
    3. Falvey, Rodney E, 1979. "The Composition of Trade within Import-restricted Product Categories," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 1105-1114, October.
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