Quantitative restrictions, unempolyment and welfare

This paper explores the effects of import quotas and voluntary export restraints (VER) on employment and welfare of an economy plagued by generalized unemployment due to wage rigidity. The welfare effects of quotas and VER in the presence of unemployment are compared with those derived in the traditional full employment model. We show that a tightening of quotas or VER may improve welfare. Copyright Kluwer Academic Publishers 1991

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Year of publication:	1991
Authors:	Chao, Chi-Chur ; Yu, Eden
Published in:	Open Economies Review. - Springer. - Vol. 2.1991, 2, p. 211-217
Publisher:	Springer
Subject:	quotas \| voluntary export restraint \| welfare

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005809936