Saturday, December 8, 2007

Assorted on VERs

A General Equilibrium Analysis of the Welfare and Employment Effects of US Quotas in Textiles, Autos, and Steel, David G. Tarr,
Using state-of-the-art modeling techniques, this report examines the costs of trade restraints in three industries. Findings indicate that voluntary export restraints in these industries cost the U.S. $21 billion in 1984 while "protecting" 174,000 jobs in the three industries. Thus, the annual cost of each job protected is approximately $120,000.


Welfare Costs of U.S. Quotas in Textiles, Steel and Autos
Jaime de Melo; David Tarr

Welfare costs of U.S. quotas on textiles, steel, and autos

For Background read Krugman and Obstfeld

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