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Differential Impacts of Country of Origin Labeling: COOL Econometric Evidence from Cattle Markets

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  • Pouliot, Sébastien
  • Sumner, Daniel A.

Abstract

Country of origin labeling (COOL) is a common practice. It occurs routinely for many products in many places, but the US implementation of mandatory COOL for meat, whose purpose is to identify the origin of the livestock used to produce the meat, generated much controversy and a major WTO dispute that has yet to be settled. This working paper estimates econometrically differential market impacts of mandatory country of origin labels on cattle raised in Canada and imported into the United States. We find significant evidence of differential impacts of COOL through widening of the price bases and a decline in ratios of imports to total domestic use for both fed and feeder cattle.

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Bibliographic Info

Paper provided by Structure and Performance of Agriculture and Agri-products Industry (SPAA) in its series Working Papers with number 148593.

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Date of creation: Dec 2012
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Handle: RePEc:ags:spaawp:148593

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Web page: http://servsas.fsaa.ulaval.ca/index.php?id=12482&L=1

Related research

Keywords: Country of Origin Labelling; trade dispute; Agricultural and Food Policy; International Relations/Trade; Q17; Q18; F1; L15;

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  1. Rude, James & Gervais, Jean-Philippe & Felt, Marie-Helene, 2010. "Detecting COOL Impacts on US-Canada Bilateral Hog and Pork Trade Flows," Working Papers 95811, Canadian Agricultural Trade Policy Research Network.
  2. Thomas Vollrath & Charles Hallahan, 2006. "Testing the Integration of U.S.-Canadian Meat and Livestock Markets," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(1), pages 55-79, 03.
  3. Jayson L. Lusk & Jason Brown & Tyler Mark & Idlir Proseku & Rachel Thompson & Jody Welsh, 2006. "Consumer Behavior, Public Policy, and Country-of-Origin Labeling," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(2), pages 284-292.
  4. Andrew Patton & Dimitris Politis & Halbert White, 2009. "Correction to “Automatic Block-Length Selection for the Dependent Bootstrap” by D. Politis and H. White," Econometric Reviews, Taylor & Francis Journals, vol. 28(4), pages 372-375.
  5. Alejandro Plastina & Konstantinos Giannakas & Daniel Pick, 2011. "Market and Welfare Effects of Mandatory Country-of-Origin Labeling in the U.S. Specialty Crops Sector: An Application to Fresh Market Apples," Southern Economic Journal, Southern Economic Association, vol. 77(4), pages 1044-1069, April.
  6. Loureiro, Maria L. & Umberger, Wendy J., 2003. "Estimating Consumer Willingness to Pay for Country-of-Origin Labeling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(02), August.
  7. Loureiro, Maria L. & Umberger, Wendy J., 2005. "Assessing Consumer Preferences for Country-of-Origin Labeling," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(01), April.
  8. Fred Kuchler & Barry Krissoff & David Harvey, 2010. "Do Consumers Respond to Country-of-Origin Labelling?," Journal of Consumer Policy, Springer, vol. 33(4), pages 323-337, December.
  9. Jayson L. Lusk & Brian C. Briggeman, 2009. "Food Values," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 184-196.
  10. Dimitris Politis & Halbert White, 2004. "Automatic Block-Length Selection for the Dependent Bootstrap," Econometric Reviews, Taylor & Francis Journals, vol. 23(1), pages 53-70.
  11. Ward, Clement E. & Schroeder, Ted C. & Schulz, Lee L., 2009. "Impacts from Government Regulations on the Canadian-U.S. Basis for Fed Cattle," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49327, Agricultural and Applied Economics Association.
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