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Tariff-Quota Non-Equivalence In a Competitive General Equilibrium Framework
journal contributionposted on 2017-06-05, 06:47 authored by Choi, E. Kwan, Marjit, Sugata
We construct a standard multi-sector, multi-factor general equilibrium model, with goods outnumbering factors to argue that in such a general structure, tariff and quota can have drastically different impacts on trade patterns. This result casts doubt on one of the fundamental results in the theory of commercial policy.