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Persistent link: https://www.econbiz.de/10001431265
We provide a novel (and old) argument for the nonequivalence of tariffs and quotas, based on the famous paper by Hotelling (1931). Unlike tariffs, quantitative restrictions are inherently dynamic. As long as the foreign exporter earns positive marginal profits, he raises their present value by...
Persistent link: https://www.econbiz.de/10014216994
We provide a novel (and old) argument for the nonequivalence of tariffs and quotas, based on the famous paper by Hotelling (1931). Unlike tariffs, quantitative restrictions are inherently dynamic. As long as the foreign exporter earns positive marginal profits, he raises their present value by...
Persistent link: https://www.econbiz.de/10003734480
Persistent link: https://www.econbiz.de/10015402080
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