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Quantitative restrictions, unempolyment and welfare (1991)

Chao, Chi-Chur ; Yu, Eden S. H.

Springer

Open economies review 2 (1991), S. 211-217

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ISSN: 1573-708X

Keywords: quotas ; voluntary export restraint ; welfare

Source: Springer Online Journal Archives 1860-2000

Topics: Economics

Notes: Abstract This paper explores the effects of import quotas and voluntary export restraints (VER) on employment and welfare of an economy plagued by generalized unemployment due to wage rigidity. The welfare effects of quotas and VER in the presence of unemployment are compared with those derived in the traditional full employment model. We show that a tightening of quotas or VER may improve welfare.

Type of Medium: Electronic Resource

URL: http://dx.doi.org/10.1007/BF01886901

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