Optimum tariffs for vertically differentiated products with an application to Indian tea exports

$53.17 plus tax (Refund Policy)

Buy Article:


Optimum export tariffs are typically related to the elasticity of demand for exports in homogeneous goods markets. In this paper we set up a simple model for large exporters of quality differentiated products and estimate optimum tariffs based on the quality of the good. Restrictions on demand parameters implied by the theoretical model are used in estimating demands for different qualities of Indian tea exports. We use the estimated model to find optimum tariffs for two qualities of Indian tea exports and find that optimum export tariffs for high quality teas should, on average, be 14% higher than the tariff on low quality tea exports.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/000368496328911

Publication date: February 1, 1996

More about this publication?
Related content

Share Content

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more