About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

Memorandum from Rudolph G Penner, Director Congressional Budget Office regarding Revenue Estimate for Auctioning Existing Import Quotas 1 (February 1987)

handle is hein.congrec/cbo10400 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE Rudolph G Penner U.S CONGRESS Director WASHINGTON, D.C. 20515 February 27, 1987 MEMORANDUM TO: Ev Ehrlich Elliot Schwartz Rosemary Marcuss Kathleen O'Connell Neil Fisher FROM: Stephen Parker SUBJECT: Revenue Estimate for Auctioning Existing Import Quotas Chairman Gray of the House Budget Committee has requested an estimate of the potential revenue effects of auctioning U.S. import quota rights to the highest bidder. Our analysis shows that about $3.7 billion could be raised in 1987 if existing import quotas, including voluntary export restraints (VERs), were auctioned. Over the three-year period ending in 1989, the period that most of these policies are in effect, a total of $12.3 billion could be collected. Since the levels of many of the existing quotas are subject to renegotiation after 1989, revenue estimates are not provided beyond that year. This memo explains how these revenue estimates are derived. No attempt is made to examine the overall merits of this action. 1/ Potential revenue sources from auctioning import quotas include only those quantitative barriers to imports that have been formally negotiated and implemented by the U.S. government. The revenue estimates assume perfect competition in all markets and no foreign retaliation. Foreign governments are presumed to continue to limit their exports to the current VER levels even if the United States changes the terms of the original agreements by auctioning the quota rights instead of granting them freely to 1. The many administrative problems that might arise with the implementation ofa system of quota auctions are examined in a forthcoming book--Auction Quotas and United States Trade Policaby C. Fred Bergsten, Jeffrey Schott, Wendy E. Takacs. and Kimberly A. Elliott of the Institute for International Economics, Washington, D.C.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most