Abstract:
Hypothesis tests are developed for the exertion of
market power by the Japanese government in the world and
domestic wheat markets. The results indicate that the
Japanese government is pursuing a more restrictive import
policy for wheat than would be indicated by an optimal
tariff strategy. Results also indicate that the Japanese
government does not impose a restrictive policy on resale
of wheat in the domestic market. An analysis of the welfare
impacts of Japanese import restrictions suggests that the
Japanese government may be pursuing a policy of collecting
tariff revenues sufficient to cover domestic producer
subsidies. The redistribution effects of Japanese import
restrictions on the rest-of-world are sizeable.
