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Export Subsidies Versus Export Quotas With Incompletely Informed Policy Makers

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  • JOTA ISHIKAWA
  • TOMOHIRO KURODA

Abstract

This paper analyses export subsidies (price incentives) and export quotas (quantity controls) in the Brander‐Spencer (1985) model when policy makers have limited information on demand and cost structures. We examine necessary or sufficient information for policy makers to determine welfare‐enhancing policies. It is crucial that they know the elasticity value of the slope of the inverse demand curve and the market share. It is also shown that for policy makers, export quotas are superior to export subsidies under certain conditions.

Suggested Citation

  • Jota Ishikawa & Tomohiro Kuroda, 2007. "Export Subsidies Versus Export Quotas With Incompletely Informed Policy Makers," The Japanese Economic Review, Japanese Economic Association, vol. 58(1), pages 118-126, March.
    • Handle: RePEc:bla:jecrev:v:58:y:2007:i:1:p:118-126
    DOI: 10.1111/j.1468-5876.2007.00349.x
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    Cited by:

    1. Liu, X., 2018. "Export Tax Rebate Policy in Chinese Fishery Sector: Who are the Beneficiaries?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277454, International Association of Agricultural Economists.
    2. Furusawa, Taiji & Higashida, Keisaku & Ishikawa, Jota, 2003. "What information is needed for welfare-enhancing policies under international oligopoly?," Japan and the World Economy, Elsevier, vol. 15(1), pages 31-46, January.
    3. Fabio Antoniou & Nikos Tsakiris, 2014. "Information and Disclosure in Strategic Trade Policy: Revisited," Journal of Industry, Competition and Trade, Springer, vol. 14(3), pages 415-427, September.

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