The Metzler Paradox and the Non‐Equivalence of Tariffs and Quotas: Further Results
François R. Casas
(University of Toronto)
Eun K. Choi
(Iowa State University)
111
Abstract
This article demonstrates that a Metzler Paradox may result from decreasing costs in the domestic import‐competing sector rather than in the foreign export industry, although the allocative implications would differ in the two cases. The article also shows that the non‐equivalence of tariffs and quotas in the presence of domestic monopoly holds even if the protected industry is not small in the world market.
Citation
Casas, F.R. and Choi, E.K. (1985), "The Metzler Paradox and the Non‐Equivalence of Tariffs and Quotas: Further Results", Journal of Economic Studies, Vol. 12 No. 5, pp. 53-57. https://doi.org/10.1108/eb002612
Publisher
:MCB UP Ltd
Copyright © 1985, MCB UP Limited