01804cas a2200265 a 4500 AALejournalIMF001808 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451874600 1018-5941 BD-DhAAL BD-DhAAL Tan, Ling. Quantity Controls, License Transferability, and the Level of Investment / Ling Tan, Kala Krishna, Ram Ranjan. Washington, D.C. : International Monetary Fund, 2001. 1 online resource (33 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper models investment/entry decisions in a competitive industry that is subject to a quantity control on an input for production. The quantity control is implemented by auctioning licenses for the restricted input (e.g., a pollution permit or a production license). The paper shows that liberalizing the quantity control could reduce investment in the industry under certain circumstances. Furthermore, the level of investment is quite different when licenses are tradable than when they are not. Key factors in the comparison include the elasticity of demand for the final good and the degree of input substitutability. Two examples are computed to illustrate the results. Mode of access: Internet Krishna, Kala. Ranjan, Ram. IMF Working Papers; Working Paper ; No. 2001/206 Full text available on IMF http://elibrary.imf.org/view/journals/001/2001/206/001.2001.issue-206-en.xml IMF e-Library