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《Contemporary Finance & Economics》 2010-04
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The Social Cost Estimation of Administrative Monopoly in China's Tobacco Industry

YANG Qian(Shandong University,Jinan 250100,China)  
The administrative monopoly in China’s tobacco industry has brought enormous social cost.The limits on production and pricing of tobacco products imposed by industrial authorities not only lead to overproduction,but also deadweight loss much greater than that caused by pure output restrictions under conditions of monopoly.The input element not through market exchange is one of the most important reasons for X-inefficiency of China’s tobacco industry;the high monopoly profits under the administrative monopoly inevitably lead to unproductive rent-seeking.It is estimated that the total social cost caused by administrative monopoly in China’s tobacco industry from 1998 to 2008 is around 1.512639 trillion to 2.68186 trillion,accounting for 0.867%~1.54% of GDP.
【Fund】: 教育部哲学社会科学研究重大课题攻关项目“转轨经济中的反行政垄断与促进竞争政策研究”(06JZD0015)
【CateGory Index】: F426.8
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