An Allais Measure of Production Sector Waste Due to Quotas

In this paper we adapt a partial equilibrium approach of Allais and Diewert to measure the efficiency loss in the producing sector due to quotas. The measure of waste is the additional profits available due to reallocation subject to constraints that the welfare of persons and firms outside the sector is unaffected. An example is presented using the tobacco quota program in the U.S.

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Year of publication:	2005-02-28
Authors:	Fulginiti, Lilyan E. ; Perrin, Richard K.
Institutions:	EconWPA
Subject:	deadweight loss \| production sector \| quotas \| waste \| Allais

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Extent:	application/pdf
Series:	Public Economics.
Type of publication:	Book / Working Paper
Notes:	Type of Document - pdf; pages: 10 10 pages
Classification:	Q - Agricultural and Natural Resource Economics
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005556910