Chan Yeung. / Thesis (M.Phil.)--Chinese University of Hong Kong, 2003. / Includes bibliographical references (leaves 56-57). / Abstracts in English and Chinese. / Chapter 1 --- Introduction --- p.1 / Chapter 2 --- "Literature reviews, contributions of this thesis and the comparison" / Chapter 2.1 --- Literature reviews / Chapter 2.11 --- Endogenous labor supply models --- p.3 / Chapter 2.12 --- The CIA models --- p.12 / Chapter 2.2 --- Contributions of this thesis and the comparison --- p.17 / Chapter 3 --- The Model --- p.20 / Chapter 4 --- "Trade restrictions, welfare and employment" / Chapter 4.1 --- Tariff and welfare --- p.26 / Chapter 4.2 --- Tariff and employment --- p.30 / Chapter 4.3 --- Comparing welfare and employment effects --- p.31 / Chapter 4.4 --- "Quotas, welfare, employment and price level" --- p.32 / Chapter 5 --- Optimal tariffs --- p.33 / Chapter 6 --- Indirect taxation and welfare --- p.40 / Chapter 7 --- Conclusion --- p.43 / Appendix / Appendix A: Determine the sign of Δ --- p.45 / Appendix B: Derivation of equation (4.2) --- p.45 / Appendix C: Derivation of equation (4.3) --- p.47 / "Appendix D: Quotas, welfare,employment and price level" --- p.48 / Appendix E: The derivation of optimal tariff --- p.50 / Appendix F: Optimal consumption tax and wage subsidy --- p.53

Includes bibliographical references. Addresses the question of what an economic model of the world wine market suggests will happen to wine production, consumption, trade and prices in various regions in the early 21st century. A subsidiary issue is what difference would global or European regional wine liberalisation make to that outlook, according to such a model. Accompanying CD-ROM comprises spreadsheet written by Nick Berger, November 2000, for the Windows and Office97 versions of Excel; a seven region world wine model (WWM7) - base version projecting the world wine market 1996-2005 as a non-linear Armington model. System requirements for accompanying CD-ROM: IBM compatible computer ; Microsoft Excel 97 or later.

In modern economies, national governments have a wide range of policies for restricting international trade and protecting domestic industries at their disposal. The most popular form of non-tariff trade policies is probably that of a direct quantitative restriction. This policy takes two principal forms: explicit import quotas and voluntary export restraints (VERs). A VER is a quota imposed by an exporting country upon exports to other countries in response to pressures exercised by the importing countries (i.e., in the form of threats of various types of import restrictions). When these two policies are partially liberalized, subject to a reasonable foreign share in the domestic market, product differentiation between imported goods and domestic goods within an imperfect market can serve to increase welfare levels within the domestic economy. In this situation, the foreign share will not be as high as it would be for the homogeneous assumption. Under a partial VER liberalization policy, if the degree of substitutability between domestic and imported goods is sufficiently small, then domestic welfare will improve as foreign imports are increased. That is, if domestic and imported goods are perfect substitutes, then the most favorable domestic policy will be to close domestic markets to the foreign country since no country can allow foreign market shares as high as 66 percent in the domestic market. In a simulation of U.S. automobile industrial production, when a partial quota liberalization is observed, welfare levels can be increased by reducing the Japanese import market share to a level below 10 percent, that is, to a level which is less than the actual current foreign market share. In real terms, this implies that U.S. auto industry must be further liberalized to acquire additional domestic benefits under a VER policy, whereas the U.S. should restrict foreign market share below 10 percent to maximize domestic welfare levels under a quota policy. This will occur if the net consumer surplus is in excess of producer net excess profits under an imperfect market structure. / Graduation date: 1993