Effective rate of protection
Effective rate of protectionA 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).
Domestic distortions argument for protectionDomestic distortions argument for protection
See second best argument.
Second-best argument for protectionSecond-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 protectionImport protection
Downside ProtectionDownside 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 protectionCall protection
A feature of some callable bonds that establishes an initial period when the bonds may not be called.
Further SuggestionsContent protection
Exchange rate protection
Patriotism argument for protection
loan protection policy
Environmental protection argument for a trade intervention
Self-sufficiency argument for protection
Marine Mammal Protection Act
Balance of payments argument for protection
Domestic content protection
Labor standards argument for protection
Investor Protection Scheme
Political economy of protection
Foreign investment argument for protection
Building Societies Investor Protection Scheme
Deposit Protection Scheme
Noneconomic objectives argument for protection
court of protection
National defense argument for protection
Actual protection rate
Retirement Protection Act of 1994