This paper is the latest in a series of ongoing work examining quota formulas. Calculations in the paper are purely illustrative.
 
Contents 

Executive Summary


I. 

Introduction


II. 

History, Role, and Use of Quota Formulas



 Relationship Between Formulas and the Functions of Quotas
 Bretton Woods Formula
 The Quota Formula Review Group (QFRG)
 Use and Impact of Quota Formulas


III. 

Choice and Specification of Variables



 GDP
 Openness
 Capital Account and Variability


IV. 

Technical Issues Related to the Form of the Formulas


V. 

Quantification of Alternative Formulas



 Choice of Formulas
 Suggested Approach
 Illustrative Calculations


VI. 

Conclusions and Issues for Discussion


Text Boxes

 Formula Proposed by QFRG
 A Measure of Capital Openness
 Capital Flows in a Balance of Payments Framework
 Alternative Formula Specifications and Properties
 Update of Existing Formulas
 Quota Adjustment Process


Text Tables

 Relative Size of Variable Coefficients in Current Five Formulas
 Distribution of Variables in World Totals: Eleventh Review Data
 Eleventh Review of Quotas: Distribution of Applicable Formulas
in Final Calculated Quotas
 Variable Coefficients and Calculated Quota Shares, by Formula
Variant
 Distribution of Variables in World Totals
 Calculated Quota Shares, by Formula Variant


Annexes

 Selection of the Database, Derivation of Quota Variables, and
Other Issues
 Evolution of Quota Formulas


Annex Box

 Methodological Issues


Annex Tables

 Countries for which Export Data were Adjusted
 Goods in Processing as a Share of Total Exports,
1997–99
 Average Adjustment to Current Account Receipts
on Account of
International Banking Interest, 1982–1994


Appendix Tables

 Source Data for BOP Statistics used in Quota Exercise:
Current
Receipts and Net Capital Inflows, 1987–99
 Source Data for BOP Statistics used in Quota Exercise:
Current
Payments and Gross Domestic Product, 1995–99
 Data Used for Quantification of Quota Formulas
