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Effects Of The Suspension Agreement: U.S.-Mexico Fresh Tomatoes Antidumping Case

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  • Jung, Jione
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    Abstract

    This paper analyzes the effects of the suspension agreement of the U.S.-Mexico fresh tomatoes antidumping cases on U.S. consumers. A linear and dynamic version of an inverse almost ideal demand system is developed to estimate consumer behavior. The measure of consumer welfare – compensating and equivalent variations – is derived specifically for the inverse demand system. The variation of cross-price flexibilities obviously reduced since the minimum export price system came into effect, but consumer welfare does not seem to change much in the circumstance. The consumers’ budget share on domestic fresh tomatoes is likely to reduce and it suggests that the suspension agreement may not guarantee the profit of domestic producers either.

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    File URL: http://purl.umn.edu/49285
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    Bibliographic Info

    Paper provided by Agricultural and Applied Economics Association in its series 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin with number 49285.

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    Date of creation: 2009
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    Handle: RePEc:ags:aaea09:49285

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    Related research

    Keywords: tomato; antidumping; inverse demand; consumer welfare; Demand and Price Analysis; International Relations/Trade;

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    1. Eales, James S. & Unnevehr, Laurian J., 1994. "The inverse almost ideal demand system," European Economic Review, Elsevier, vol. 38(1), pages 101-115, January.
    2. Hicks, J. R., 1986. "A Revision of Demand Theory," OUP Catalogue, Oxford University Press, number 9780198285502.
    3. Kathy Baylis & Jeffrey M. Perloff, 2010. "Trade diversion from tomato suspension agreements," Canadian Journal of Economics, Canadian Economics Association, vol. 43(1), pages 127-151, February.
    4. Brown, Mark G & Lee, Jonq-Ying & Seale, James L, Jr, 1995. "A Family of Inverse Demand Systems and Choice of Functional Form," Empirical Economics, Springer, vol. 20(3), pages 519-30.
    5. Grant, Jason H. & Foster, Kenneth A., 2005. "An Inverse Almost Ideal Demand System of Fresh Tomatoes in the U.S," 2005 Annual meeting, July 24-27, Providence, RI 19193, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Moschini, GianCarlo & Vissa, Anuradha, 1992. "A Linear Inverse Demand System," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(02), December.
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