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Abstract

This paper contributes to the understanding of the impact of removing quarantine restrictions on the income risk of domestic producers. It develops a model of this impact on a producer's perception of income risk. Four effects of the introduction of imports on the perceived income risk of domestic producers are identified, as well as a range of factors which influence the magnitude of these effects. A numerical analysis evaluates the role of each of these factors in determining the producer's perception of income risk following the introduction of imports. This evaluation provides a range of conclusions relevant to quarantine policy.

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