EXPLAINING THE DISTRIBUTION OF QUOTA RENTS FROM US CHEESE IMPORTS

A theoretical model is outlined to illustrate how rents are generated from import quotas. The model is used to estimate rents from US cheese import quotas; rents are substantial. Relative rent capture by importers and exporters is explained by estimating an industrial organisation-type model. Unequal market power is important in explaining the distribution of rents between importers and exporters. Exporters tend to maintain price-cost margins and let importers capture a larger share as rent size increases.


Issue Date:
1990-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/22500
Published in:
Australian Journal of Agricultural Economics, Volume 34, Number 1
Page range:
1-20
Total Pages:
20




 Record created 2017-04-01, last modified 2017-04-04

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