How to Calculate the Quota Rent
By: Patrick Gleeson, Ph. D.,
Reviewed by: Jayne Thompson, LL.B., LL.M.
Updated August 26, 2019
Economists value quota rent, or quota wedge, calculations because they help
economists understand the effect of tariffs, import restrictions and other actions that
change the cost of particular goods to the consumer. The actual calculation of the quota
rent is simple. The data needed to make the calculation are substantial, however, and
require some understanding of the economic context. Sometimes the existence of a
quota rent is obvious; at other times, the first task when undertaking a quota rent
calculation is determining if it exists and, if so, how.
