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Full-Text Articles in Macroeconomics

External Diseconomies In Competitive Supply: Comment, George A. Hay, John J. Mcgowan Sep 1973

External Diseconomies In Competitive Supply: Comment, George A. Hay, John J. Mcgowan

Cornell Law Faculty Publications

In a recent article in this Review, Charles Goetz and James Buchanan (G-B) assert that " . . . the standard description of misallocation in the presence of external production diseconomies is misleading . . . " because these externalities produce a ". . . combination of exchange-inefficiency with production-inefficiency [which ] renders the construction of correction devices much more difficult" (p. 889). Stated otherwise their contention is that with external diseconomies that are internal to an industry, i.e., those that each firm in an industry inflicts on other firms in the same industry, a competitive regime in the presence of a per unit tax on output designed to eliminate the ...


Import Controls On Foreign Oil: Tariff Or Quota?, George A. Hay Sep 1971

Import Controls On Foreign Oil: Tariff Or Quota?, George A. Hay

Cornell Law Faculty Publications

During the recent deliberation of the Cabinet Task Force on Oil Import Controls, considerable attention was devoted to the question whether, regardless of the level of imports which should be allowed, the control should take the form of a quota or a tariff. Occasionally reference was made to a well-known equivalence theorem which holds that when there is perfect competition in the product market a tariff will generate a volume of imports which, if alternatively set as a quota, produces an identical discrepancy between foreign and domestic prices. Therefore, other than the transfer of revenues from quota holders to the ...