Temporary import and export quotas and the current account
Author
dc.contributor.author
López Vega, Ramón
Author
dc.contributor.author
Panagariya, Arvind
Admission date
dc.date.accessioned
2018-08-28T16:01:03Z
Available date
dc.date.available
2018-08-28T16:01:03Z
Publication date
dc.date.issued
1991
Cita de ítem
dc.identifier.citation
Journal of International Economics Vol. 31, No. 3–4, November 1991, Pages 371-381
es_ES
Identifier
dc.identifier.issn
0022-1996
Identifier
dc.identifier.other
10.1016/0022-1996(91)90045-8
Identifier
dc.identifier.uri
https://repositorio.uchile.cl/handle/2250/151324
Abstract
dc.description.abstract
This paper provides a comprehensive analysis of temporary import and export quotas in a two-period optimization model imposing much weaker restrictions on preferences and production technologies than in the existing literature. We demonstrate that under net substitutability the imposition of a temporary quota which reduces imports by a small amount improves the current account and causes an appreciation of the real exchange rate. If the initial equilibrium is quota restricted, the effects of tightening the quota are ambiguous. By contrast, under substitutability, a tightening of export quotas necessarily leads to a current account deficit regardless of the nature of the initial equilibrium.