2.8 Auctioning Import Licenses. In the text we explained that tariffs can be set to have the...

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2.8 Auctioning Import Licenses. In the text we explained that tariffs can be set to have the same effects as import quotas. However, if the government gives import licenses to producers, it will not collect any revenues. Suppose the government auctions the import licenses to the highest bidders. How will the revenue from the auction compare to the revenue raised by tariffs?

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Economics: Principles, Applications And Tools

ISBN: 9781915294227

7th Edition

Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez

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