DP401 Welfare Costs of US Quotas in Textiles, Steel and Autos
|Author(s):||Jaime de Melo, David Tarr|
|Publication Date:||April 1990|
|Keyword(s):||General Equilibrium, Quantitative Restraints, Voluntary Export Restraints, Welfare Costs|
|JEL(s):||122, 421, 422|
|Programme Areas:||International Trade and Regional Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=401|
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.