Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Law
More On The Equivalence Of Tariffs And Quotas, Jagdish N. Bhagwati
More On The Equivalence Of Tariffs And Quotas, Jagdish N. Bhagwati
Faculty Scholarship
In an earlier paper on the equivalence of tariffs and quotas [1], I argued that this equivalence – defined such that a tariff would lead to a level of imports which, if alternatively set as a quota, would generate the same implicit tariff – followed from the assumptions of competitive domestic production, supply of imports, and holding of quotas. This universality of competitiveness sufficed to guarantee equivalence, as defined. It was further argued that a departure from these assumptions could, in general, destroy this equivalence and several such departures were analyzed: (1) perfect competition in domestic production replaced by pure …