Effective rate of protection

 

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Effective rate of protection

A measure of the protection provided to an industry by the entire structure of tariffs, taking into account the effects of tariffs on inputs as well as on outputs. Letting bij be the share of input i in the value of output j, the ERP of industry j is ERPj = (tj-Sibijtij)/(1-Sibij). Due to Corden (1966).



Similar Matches

Domestic distortions argument for protection

Domestic distortions argument for protection

See second best argument.


Second-best argument for protection

Second-best argument for protection

1. Any argument for protection that can be countered by pointing to a different and less distortionary policy that would achieve the same desired result at lower economic cost. 2. An argument for protection to partially correct an existing distortion in the economy when the first-best policy for that purpose is not available. For example, if domestic production generates a positive externality and a production subsidy to internalize it is not available, then a tariff may be second-best optimal.


Import protection

Import protection

See protection.


Downside Protection

Downside Protection

Generally used in connection with covered call writing, this is the cushion against loss, in case of a price decline by the underlying security, that is afforded by the written call option. Alternatively, it may be expressed in terms of the distance the stock could fall before the total position becomes a loss (an amount equal to the option premium), or it can be expressed as percentage of the current stock price.


Call protection

Call protection

A feature of some callable bonds that establishes an initial period when the bonds may not be called.


Further Suggestions

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Retirement Protection Act of 1994


 
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