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Anti-dumping Duties and the Byrd Amendment

Author

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  • David R. Collie
  • Hylke Vandenbussche

    ()

Abstract

The Byrd amendment to US anti-dumping law distributes the revenue from anti-dumping duties imposed on foreign firms to the domestic firms that lodged the complaint of dumping. When the government sets its anti-dumping duty to maximise a welfare function that attaches greater weight to the profits of the domestic industry than to consumer surplus or tax revenue, it is shown that the Byrd amendment will lead to lower duties and higher welfare if the weight on the profits of the domestic industry is sufficiently large. Also, the Byrd amendment makes it less likely that the anti-dumping duty will be prohibitive.

Suggested Citation

  • David R. Collie & Hylke Vandenbussche, 2004. "Anti-dumping Duties and the Byrd Amendment," LICOS Discussion Papers 14904, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  • Handle: RePEc:lic:licosd:14904
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    File URL: http://www.econ.kuleuven.be/licos/publications/dp/dp149.pdf
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    References listed on IDEAS

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    1. Brander, James A. & Spencer, Barbara J., 1984. "Trade warfare: Tariffs and cartels," Journal of International Economics, Elsevier, vol. 16(3-4), pages 227-242, May.
    2. B. Douglas Bernheim & Michael D. Whinston, 1986. "Menu Auctions, Resource Allocation, and Economic Influence," The Quarterly Journal of Economics, Oxford University Press, vol. 101(1), pages 1-31.
    3. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    4. Barbara J. Spencer & James A. Brander, 1982. "Tariff Protection and Imperfect Competition," Working Papers 517, Queen's University, Department of Economics.
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    Cited by:

    1. Roger Clarke & David R . Collie, 2006. "Optimum-Welfare And Maximum-Revenue Tariffs Under Bertrand Duopoly," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(3), pages 398-408, July.

    More about this item

    Keywords

    Tariffs; US trade policy; WTO; Cournot oligopoly.;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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