Quota Rents and Subsidies: The Case of U.S. Cheese Import Quotas

Abstract

this paper examines the effects of import quotas and foreign exports subsidies on the size of rents from U.S. cheese imports and their division among importers and exporters. Consumers pay a hefty portion of the wholesale price in rents and tariffs; EC's subsidization of cheese exports to the United States has served primarily to maintain rents.