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REVENUE SEEKING AND METZLER PARADOXES
Author(s) -
Yabuuchi Shigemi
Publication year - 1989
Publication title -
economics and politics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.822
H-Index - 45
eISSN - 1468-0343
pISSN - 0954-1985
DOI - 10.1111/j.1468-0343.1989.tb00011.x
Subject(s) - revenue , economics , production (economics) , relation (database) , tariff , neoclassical economics , positive economics , microeconomics , international economics , finance , computer science , database
Bhagwati and Srinivasan (1980) demonstrated the interesting possibility that once revenue seeking is introduced the Metzler paradox may arise even for a small country: that is, a tariff will decrease the output of the inportable good. In this note, we establish the conditions under which the Metzler production paradox will arise and discuss the relation between the importable‐good and the exportable‐good production paradoxes.