The Welfare Effects of Distribution Regulations in OECD Countries
AbstractThis article presents new data on distribution margins in eight OECD countries and uses an Applied General Equilibrium (AGE) framework to assess the welfare impacts of inefficient distribution. I estimate the extent to which regulations inflate margins. A comparison of margins across countries finds, in contrast to other studies, that Japan's margins are unusually high. The AGE simulations imply that inefficient distribution imposes substantial welfare costs, especially in Japan, with the costs rivaling those of trade barriers. The results also imply that distribution impediments can significantly reduce imports. (JEL D58, F13, L81) Copyright 2005, Oxford University Press.
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Bibliographic InfoArticle provided by Western Economic Association International in its journal Economic Inquiry.
Volume (Year): 43 (2005)
Issue (Month): 4 (October)
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Find related papers by JEL classification:
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
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