The theory of domestic content protection and content preference

Research output: Contribution to journalArticlepeer-review

Abstract

This paper investigates the resource reallocation effected by content protection and content preference schemes under alternative assumptions regarding the definition of domestic content, the number of intermediate goods, and the market structure of the domestic intermediate good industry. Content protection is shown to be equivalent to a combination of more familiar commercial policies. However, the extent of application of these policies is determined endogenously by parameters of the production functions for intermediate and final goods. A number of anomalous and undesirable outcomes that may result from content protection and content preference are discussed.

Original languageAmerican English
Pages (from-to)583-603
Number of pages21
JournalQuarterly Journal of Economics
Volume96
Issue number4
DOIs
StatePublished - Nov 1981

ASJC Scopus subject areas

  • Economics and Econometrics

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