Quota Use under VERs: A theoretical framework and some evidence on MFA quota use
In this paper, we propose a framework to study quota use under Voluntary Export Restraints (VERs). Our model unifies three strands of literature in finance and international trade policy research: the equivalence between tariff and quotas/VERs, option pricing, and option exercise. We also present evidence on quota utilisation rates for clothing exports under the Multi-Fibre Arrangement (MFA) from the most important Asian suppliers to the EU.
|Date of creation:||2004|
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- Krishna, Kala, 1990.
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- Faini, R. & Melo, J. de & Takacs, W., 1992. "A Primer on the MFA Maze," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 92.15, Institut d'Economie et Econométrie, Université de Genève.
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- Geske, Robert, 1979. "The valuation of compound options," Journal of Financial Economics, Elsevier, vol. 7(1), pages 63-81, March.
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- repec:fth:geneec:93.07 is not listed on IDEAS
- Trela, Irene & Whalley, John, 1995. "Internal Quota-Allocation Schemes and the Costs of the MFA," Review of International Economics, Wiley Blackwell, vol. 3(3), pages 284-306, October.
- Irene Trela & John Whalley, 1991. "Internal Quota Allocation Schemes and the Costs of the MFA," NBER Working Papers 3627, National Bureau of Economic Research, Inc.
- Krishna, Kala, 1993. "Theoretical Implications of Imperfect Competition on Quota License Prices and Auctions," World Bank Economic Review, World Bank Group, vol. 7(1), pages 113-136, January.
- Eldor, Rafael & Marcus, Alan J., 1988. "Quotas as options: Valuation and equilibrium implications," Journal of International Economics, Elsevier, vol. 24(3-4), pages 255-274, May.
- Spencer, Barbara J., 1997. "Quota licenses for imported capital equipment: Could bureaucrats ever do better than the market?," Journal of International Economics, Elsevier, vol. 43(1-2), pages 1-27, August.
- 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.
- Anderson, James E., 1987. "Quotas as options: Optimality and quota license pricing under uncertainty," Journal of International Economics, Elsevier, vol. 23(1-2), pages 21-39, August.
- Murray, Tracy & Schmidt, Wilson & Walter, Ingo, 1983. "On the equivalence of import quotas and voluntary export restraint," Journal of International Economics, Elsevier, vol. 14(1-2), pages 191-194, February.
- Cunha, Luis Campos e & Santos, Vasco, 1996. "Sleeping quotas, pre-emptive quota bidding and monopoly power," Journal of International Economics, Elsevier, vol. 40(1-2), pages 127-148, February.
- 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.
- Robert C. Feenstra, 1992. "How Costly Is Protectionism?," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 159-178, Summer. Full references (including those not matched with items on IDEAS)
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