Working Paper
Are all trade policies created equal? empirical evidence for nonequivalent market power effects of tariffs and quotas
Blonigen, Bruce A.; Wilson, Wesley W.; Pierce, Justin R.; Liebman, Benjamin H. (2012)
Over the past 50 years, the steel industry has been protected by a wide variety of trade policies, both tariff- and quota-based. We exploit this extensive heterogeneity in trade protection to examine the well-established theoretical literature predicting nonequivalent effects of tariffs and quotas on domestic firms' market power. Using plant-level Census Bureau data for steel plants from 1967-2002, we find evidence for significant market power effects for binding quota-based protection, but not tariff-based protection, particularly with respect to integrated and minimill steel producers. Our ...
Finance and Economics Discussion Series , Paper 2012-17