Shadow pricing market access: A trade benefit function approach
AbstractAppropriate assessment of the social value of market access is at the core of a broad range of inquiries in trade research. We propose a new approach based on a trade benefit function to obtain the shadow value of net imports. Our approach is in keeping with well-established trade welfare measurement techniques, for the trade benefit function is dual to the standard trade expenditure function. This dual relation further allows for a direct retrieval of the shadow values of net imports from the trade benefit function. The operationality of our approach is demonstrated in a series of applications and simulations.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Theory.
Volume (Year): 146 (2011)
Issue (Month): 4 (July)
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Web page: http://www.elsevier.com/locate/inca/622869
Trade benefit function Shadow prices of net imports;
Other versions of this item:
- Chau, Nancy H. & Fare, Rolf, 2008. "Shadow Pricing Market Access: A Trade Benefit Function Approach," Discussion Papers 6218, University of Bonn, Center for Development Research (ZEF).
- Chau, Nancy H. & Fare, Rolf, 2007. "Shadow Pricing Market Access: A Trade Benefit Function Approach," Working Papers 127015, Cornell University, Department of Applied Economics and Management.
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