Document Type
Article
Publication Version
Published Version
Publication Date
2-1993
Journal or Book Title
The Review of Economics and Statistics
Volume
75
Issue
1
First Page or Article ID Number
97
Last Page
106
DOI
10.2307/2109630
Abstract
Tobin and Houthakker's work on consumer behavior under quantity rationing has been extended by many authors, especially through the use of duality theory. This paper uses duality theory to extend the work on demand theory under rationing to the case of producer behavior under quotas. These results permit estimation of otherwise unobservable market supply and demand structures. The structure of the farm economy operating under a tobacco quota system is estimated, and the theory is utilized to infer that the supply elasticity of tobacco would be about 7.0 if the quotas were removed. Estimates such as this are not normally attainable without the theory outlined here, even though they are essential for the evaluation of policy changes.
Copyright Owner
MIT Press
Copyright Date
1993
Language
en
File Format
application/pdf
Recommended Citation
Fulginiti, Lilyan and Perrin, Richard, "The Theory and Measurement of Producer Response Under Quotas" (1993). Economics Publications. 23.
https://lib.dr.iastate.edu/econ_las_pubs/23
Included in
Agricultural and Resource Economics Commons, Agricultural Economics Commons, Behavioral Economics Commons
Comments
This article is from The Review of Economics and Statistics 75 (1993): 97–106, doi:10.2307/2109630. Posted with permission.