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Full-Text Articles in Social and Behavioral Sciences
An Allais Measure Of Production Sector Waste Due To Quotas, Lilyan E. Fulginiti, Richard K. Perrin
An Allais Measure Of Production Sector Waste Due To Quotas, Lilyan E. Fulginiti, Richard K. Perrin
Department of Agricultural Economics: Faculty Publications
In this paper we adapt a partial equilibrium approach of Allais and Diewert to measure the efficiency loss in the producing sector due to quotas. The measure of waste is the additional profits available due to reallocation subject to constraints that the welfare of persons and firms outside the sector is unaffected. An example is presented using the tobacco quota program in the U.S.
Measures Of Waste Due To Quotas, Lilyan E. Fulginiti, Richard K. Perrin
Measures Of Waste Due To Quotas, Lilyan E. Fulginiti, Richard K. Perrin
Department of Agricultural Economics: Faculty Publications
This paper addresses the issue of measuring waste due to the imposition of a production quota. our objective is to elaborate two alternative general equilibrium concepts of the welfare loss due to the imposition of a production quota, and to illustrate their use by considering costs of the U.S. tobacco program.