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Title: |
Transfers, Import Quota and Welfare: A
Two-Country Three-Agent Model |
| Author: |
Shin, Dong-Cheon |
| Author
Affiliation: |
Yonsei U |
| Source: |
International Economic Journal, Spring 1994, v. 8, no. 1, pp. 67-76 |
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Publication Date: |
Spring 1994 |
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Abstract: |
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. |
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