Transfers, Import Quota and Welfare: A Two-Country Three-Agent Model
Shin, Dong-Cheon
Журнал:
International Economic Journal
Дата:
1994
Аннотация:
This paper analyses the welfare effects of a transfer in a two-country three-agent model with an import quota. It shows that an intra-country transfer between two factor-income classes cannot generate the paradoxes if markets are Walras-stable. If the favorable Stolper-Samuelson effect caused by a transfer to the foreign country by the anti-protective class dominates the initial burden of the transfer, making the class better off despite (Walrasian) market stability, then the import quota must be 'too' stringent as compared with the Pareto-optimal one. [F 11, F 13]
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