Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5086470 | Japan and the World Economy | 2006 | 12 Pages |
Abstract
This paper examines and compares the effects of tariffs and quotas imposed on oligopolistic intermediate input markets. We introduce tariff and quota revenues and the substitutability of all inputs including two intermediate inputs. We focus on Cournot-Nash equilibrium and show that if the price elasticity of demand for the final good is smaller (respectively greater) than the elasticity of substitution between the intermediate inputs, the output of the duopolist in the protected country is smaller (respectively greater) under a quota than under a tariff.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Masayuki Okawa,