Publications [#239184] of Edward Tower

Journal Articles

1. Sweeney, RJ; Tower, E; Willett, TD, The ranking of alternative tariff and quota policies in the presence of domestic monopoly, Journal of International Economics, vol. 7 no. 4 (January, 1977), pp. 349-362, Elsevier BV, ISSN 0022-1996
   (last updated on 2024/08/25)

   Abstract:
   Bhagwati demonstrated the nonequivalence between tariffs and quotas in the presence of monopoly. This paper also assumes domestic production to be monopolized and shows that giving import licenses or tariff revenues to the domestic producer may raise or lower the welfare cost of protection and the price paid by consumers from the price under other tariff and quota arrangements which maintain the same market share for the domestic producer. However, if the monopolist realizes that commercial policy is an instrument used to maximize the policymaker's welfare function, instead of being a goal in itself, the equivalence of tariffs and quotas re-emerges. © 1977.