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T. G. Schmitz and A. Schmitz, “Compensation and the Twin Producer Gains from Production Quotas,” Theoretical Economic Letters, Vol. 1, No. 3, 2011, pp. 70-72. doi:10.4236/tel.2011.13015

has been cited by the following article:

• TITLE: Consumer Tax Production Quota Buyouts and Negative Compensation: Producers’ Dilemma

  AUTHORS: Andrew Schmitz, Dwayne J. Haynes, Troy G. Schmitz

  KEYWORDS: Consumer Tax Production Quota Buyout; Negative Compensation; Tobacco

  JOURNAL NAME: Theoretical Economics Letters, Vol.3 No.3, June 7, 2013

  ABSTRACT: In some cases, production quota buyouts can be paid for through consumer taxes. Using a simplified two-period model, we show that producers can never gain from a consumer tax buyout even if the compensation is based on an inflated quota value. The higher the quota value used as the basis of compensation, the greater is the overall producer loss from the buyout. This producer loss within a two-period model buyout is called “negative producer compensation”.