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Safeguards and Investigations

  • Mostafa Beshkar
  • Eric W. Bond
Chapter

Abstract

We characterize the optimal safeguard policy for a small country under two types of safeguard mechanisms: one in which tariff changes are triggered by changes in import prices or import volumes and one in which an investigation is required to obtain increased protection. We assume the government uses a weighted social welfare function to evaluate policies, and that an investigation represents the use of resources to reveal the value of private information regarding income of producers. The safeguards we consider correspond to the WTO's special safeguard mechanism for agricultural and the WTO's safeguard agreement, respectively.

Keywords

Private Information Marginal Utility Social Welfare Function Import Price World Price 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer India 2014

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of New HampshireDurhamUSA
  2. 2.Department of EconomicsVanderbilt UniversityNashvilleUSA

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