IDEAS home Printed from https://ideas.repec.org/a/cje/issued/v26y1993i2p447-56.html
   My bibliography  Save this article

A Welfare Comparison between VERS and Tariffs under the GATT

Author

Listed:
  • Michael O. Moore
  • Steven M. Suranovic

Abstract

Economic theory suggests that tariffs are welfare-superior to voluntary export restraints in the presence of perfect competition. However, with perfectly competitive markets, some authors have found that voluntary export restraints may be welfare superior to tariffs. The authors reconsider the comparison between a voluntary export restraint and a tariff in the context of GATT-based constraints. Using a model of perfect competition, the authors show that a voluntary export restraint can welfare-dominate a tariff increase that is accompanied by a compensatory reduction in the tariff on another good or if the tariff is matched with a retaliatory tariff on domestic exports.

Suggested Citation

  • Michael O. Moore & Steven M. Suranovic, 1993. "A Welfare Comparison between VERS and Tariffs under the GATT," Canadian Journal of Economics, Canadian Economics Association, vol. 26(2), pages 447-456, May.
  • Handle: RePEc:cje:issued:v:26:y:1993:i:2:p:447-56
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0008-4085%28199305%2926%3A2%3C447%3AAWCBVA%3E2.0.CO%3B2-O
    Download Restriction: only available to JSTOR subscribers
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michael O. Moore, 1996. "Steel Protection in the 1980s: The Waning Influens of Big Steel?," NBER Chapters, in: The Political Economy of American Trade Policy, pages 73-132, National Bureau of Economic Research, Inc.
    2. Fuhmei Wang, 2011. "Who Bears the Burden of Voluntary Export Restraints?," Prague Economic Papers, Prague University of Economics and Business, vol. 2011(3), pages 216-231.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cje:issued:v:26:y:1993:i:2:p:447-56. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prof. Werner Antweiler (email available below). General contact details of provider: https://edirc.repec.org/data/ceaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.