Abstract
In order to fund production/marketing quota redistributions or reduce the amount of quota outstanding, regulators often tax quota asset market trades. This assessment is shown to impede the transfer of quota to more efficient producers if rental markets are prohibited. Inefficient producers will produce too much, and the magnitude of cost inefficiencies will increase with the size of the assessment tax. Possible remedies to the problem are also discussed.
| Original language | English |
|---|---|
| Pages (from-to) | 191-200 |
| Number of pages | 10 |
| Journal | Canadian Journal of Agricultural Economics |
| Volume | 46 |
| Issue number | 2 |
| DOIs | |
| State | Published - Jul 1998 |
| Externally published | Yes |