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Smuggling, Camouflaging, and Market Structure

dc.contributor.authorJensen, Richarden_US
dc.contributor.authorThursby, Jerry G.en_US
dc.contributor.authorThursby, Marie C.en_US
dc.date.accessioned2013-11-14T23:21:17Z
dc.date.available2013-11-14T23:21:17Z
dc.date.issued1988-06en_US
dc.identifier.otherMichU DeptE ResSIE D221en_US
dc.identifier.otherK420en_US
dc.identifier.otherL660en_US
dc.identifier.otherK330en_US
dc.identifier.urihttps://hdl.handle.net/2027.42/100799
dc.description.abstractWe examine how market structure and enforcement affect smuggling and welfare in a model where smuggling is camoflaged by legal sales. Conditions are given for when some, but not necessarily all, firms smuggle. With camouflaging, the market price is below the price when all sales are legal, so smuggling improves welfare if the price effect outweighs excess smuggling cost. This welfare effect is directly related to the degree of competition. Increased enforcement in this model potentially reduces welfare. The model is shown to be consistent with evidence on cigarette smuggling in the United States for 1975-1982.en_US
dc.description.sponsorshipResearch Seminar in International Economics, Department of Economics, University of Michiganen_US
dc.relation.ispartofseriesSeminar Discussion Paperen_US
dc.subjectMarketen_US
dc.subjectPricesen_US
dc.subjectModelen_US
dc.subjectCompetitionen_US
dc.subject.otherIllegal Behavior and the Enforcement of Lawen_US
dc.subject.otherInternational Lawen_US
dc.subject.otherFooden_US
dc.subject.otherBeveragesen_US
dc.subject.otherCosmeticsen_US
dc.subject.otherTobaccoen_US
dc.subject.otherWine and Spiritsen_US
dc.subject.otherU.S.en_US
dc.titleSmuggling, Camouflaging, and Market Structureen_US
dc.typeWorking Paperen_US
dc.subject.hlbsecondlevelEconomicsen_US
dc.subject.hlbtoplevelSocial Sciencesen_US
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/100799/1/ECON259.pdf
dc.owningcollnameEconomics, Department of - Working Papers Series


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