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Rent seeking with politically contestable rights to tariff-rate import quotas (Inglés)

This paper analyzes rent seeking for agricultural import quotas and the associated waste of resources when politically contestable licenses are allocated to either or both importers and exporters. In a two -stage simultaneous contest where firms rent seek for licenses and then bargain over the import/export price, it is shown that (1) rents are not dissipated completely because of uncertainty in allocation of rights, (2) the dissipation ratio increases...
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