Ranking Optiimal Tariffs and Quotas for a Large Country under Uncertainty
نویسنده
چکیده
Optimal tariffs and quotas are comgared for a large country under uncertainty. If the import supply schedule has constant elastjcity and is subject to multiplicative uncertainty and domestic demand is random then the optimal policy is a fixed +.d valorem tariff. If the supply schedule has constant elasticity but this elasticity is random then the optimal tariff is superior to the optimal quota. If the demaud and supply schedules are linear then the optimal quota is superior to the optimal tariff if and only if the supply schedule is inelastic and the degree of uncertainty in ;:A demand and supply schedules is small
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