Discussion Paper Details

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Title: Welfare Costs of US Quotas in Textiles, Steel and Autos

Author(s): Jaime de Melo and David Tarr

Publication Date: April 1990

Keyword(s): General Equilibrium, Quantitative Restraints, Voluntary Export Restraints and Welfare Costs

Programme Area(s): International Trade and Regional Economics

Abstract: This paper quantifies welfare costs and resource shifts that would occur if US quantitative restrictions in textiles, steel and autos were removed. Estimates are derived from a static ten-sector general the equilibrium model of the US economy. The welfare loss from the quantitative restrictions is estimated at approximately 1984 US$20 to their high rent transfer component (about 75%), these restrictions are equivalent (in welfare terms) to an average across the board tariff of 20% such rates were common in the early days of multilateral tariff reduction.

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Bibliographic Reference

de Melo, J and Tarr, D. 1990. 'Welfare Costs of US Quotas in Textiles, Steel and Autos'. London, Centre for Economic Policy Research.