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Export quotas versus export tariffs in the presence of domestic monopoly
Authors:Yeong-Her Yeh
Affiliation:(1) University of Hawaii, USA
Abstract:The purpose of this paper is to show that export quotas and export tariffs are different in their economic effects when there is domestic monopoly. In the presence of domestic monopoly, an export quota may not reduce the domestic price of the exportable good, whereas an export tariff will always reduce it. This is true whether the country concerned is a small country or a large country.
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