caa a22 4500 378936301 CHVBK 20180915123325.0 cr unu---uuuuu 161128e20040706xx s 000 0 eng 10.2202/1538-0645.1206 doi (NATIONALLICENCE)gruyter-10.2202/1538-0645.1206 Quantity Controls, License Transferability, and the Level of Investment [Elektronische Daten] [Kala M Krishna, Ling Hui Tan, Ram Ranjan] This paper models investment/entry decisions in a competitive industry that is subject to a quantity control, either on output or on a production input. The quantity control is implemented via the sale of licenses for the restricted output/input. We show that liberalizing the quantity control could reduce investment in the industry under certain circumstances. Furthermore, the level of investment in the industry is different depending on whether the licenses are tradable or not. Key factors to consider are the elasticity of demand for the final good and the degree of input substitutability. Two examples are presented to illustrate the results. ©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston F10, F13 nationallicence quotas nationallicence licensing nationallicence transferability nationallicence tradable quotas nationallicence entry nationallicence investment nationallicence Krishna Kala M. Pennsylvania State University, kmk4@psu.edu aut Tan Ling Hui International Monetary Fund, ltan@imf.org aut Ranjan Ram University of Florida, ram.ranjan@mq.edu.au aut Contributions in Economic Analysis & Policy De Gruyter 3/1(2004-07-06) 3:1 2004 3 bejeap https://doi.org/10.2202/1538-0645.1206 text/html Onlinezugriff via DOI 1 research article jats NATIONALLICENCE 856 40 https://doi.org/10.2202/1538-0645.1206 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Krishna Kala M. Pennsylvania State University, kmk4@psu.edu aut NATIONALLICENCE 700 1- Tan Ling Hui International Monetary Fund, ltan@imf.org aut NATIONALLICENCE 700 1- Ranjan Ram University of Florida, ram.ranjan@mq.edu.au aut NATIONALLICENCE 773 0- Contributions in Economic Analysis & Policy De Gruyter 3/1(2004-07-06) 3:1 2004 3 bejeap CC0 http://creativecommons.org/publicdomain/zero/1.0 nationallicence SWISSBIB 093440553 BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-gruyter