IDEAS home Printed from https://ideas.repec.org/p/cor/louvco/1996052.html
   My bibliography  Save this paper

Liberalization, quality and welfare : removing the Italian VER on Japanese car exports

Author

Listed:
  • TURRINI , Alessandro

    (Center for Operations Research and Econometrics (CORE), Université catholique de Louvain (UCL), Louvain la Neuve, Belgium)

Abstract

Both the theoretical and the empirical literature on international trade agree that quantitative restrictions on trade have an impact on the average quality of exports. Yet, in evaluating (ex-ante) trade policy effects, there are no studies tiling into account the role of the change in quality. In this paper the choice of quality is endogenized in a two-stage game in a model which is calibrated to the Italian car market, one of the mast protected in Europe. Simulating the removal of the VER on Japanese exports, there are substantial gains from liberalization when only quantity effects are considered. Results change dramatically if quality effects are taken into account: the downgrading in Japanese exports entails a strong reduction in consumers' gains.

Suggested Citation

  • TURRINI , Alessandro, 1996. "Liberalization, quality and welfare : removing the Italian VER on Japanese car exports," CORE Discussion Papers 1996052, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:1996052
    as

    Download full text from publisher

    File URL: https://uclouvain.be/en/research-institutes/immaq/core/dp-1996.html
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Mas-Colell, Andreu, 1989. "An equivalence theorem for a bargaining set," Journal of Mathematical Economics, Elsevier, vol. 18(2), pages 129-139, April.
    2. McLennan, Andrew, 1989. "The Space of Conditional Systems is a Ball," International Journal of Game Theory, Springer;Game Theory Society, vol. 18(2), pages 125-139.
    3. Gale, David, 1976. "The linear exchange model," Journal of Mathematical Economics, Elsevier, vol. 3(2), pages 205-209, July.
    4. Dhillon, Amrita & Mertens, Jean Francois, 1996. "Perfect Correlated Equilibria," Journal of Economic Theory, Elsevier, vol. 68(2), pages 279-302, February.
    5. Wilson, Robert, 1992. "Strategic analysis of auctions," Handbook of Game Theory with Economic Applications,in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 8, pages 227-279 Elsevier.
    6. Shapley, Lloyd S & Shubik, Martin, 1977. "Trade Using One Commodity as a Means of Payment," Journal of Political Economy, University of Chicago Press, vol. 85(5), pages 937-968, October.
    7. Dubey, Pradeep & Sahi, Siddhartha, 2003. "Price-mediated trade with quantity signals: an axiomatic approach," Journal of Mathematical Economics, Elsevier, vol. 39(5-6), pages 377-389, July.
    8. Forges, Francoise M, 1986. "An Approach to Communication Equilibria," Econometrica, Econometric Society, vol. 54(6), pages 1375-1385, November.
    9. Danilov, V. I. & Sotskov, A. I., 1990. "A generalized economic equilibrium," Journal of Mathematical Economics, Elsevier, vol. 19(4), pages 341-356.
    10. Myerson, Roger B, 1986. "Multistage Games with Communication," Econometrica, Econometric Society, vol. 54(2), pages 323-358, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    VERs; Quality; Automotive industry;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cor:louvco:1996052. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alain GILLIS). General contact details of provider: http://edirc.repec.org/data/coreebe.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.