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On the effects of technology improvements in multi-market models: Theory and evidence

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Abstract

The purpose of this paper is to develop the methodology that allows the inclusion of a technology variable in multi-market welfare models. We compare the price induced welfare effects obtained from a multimarket technology-inclusive model, a multimarket technology-exclusive model and a single-market model. An application to the Greek cotton market shows that the omission of the effects of technology biases the estimated welfare effects. Moreover, welfare estimates from the multi-market approach carry superior statistical properties than estimates obtained from the single-market approach.

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Bibliographic Info

Paper provided by Department of Economics, University of Macedonia in its series Discussion Paper Series with number 2009_04.

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Date of creation: Mar 2009
Date of revision: Mar 2009
Handle: RePEc:mcd:mcddps:2009_04

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Web page: http://www.uom.gr/index.php?tmima=3

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Keywords: Multi-Market; Single Market; Technology; Bootstrap; Trade Liberalization.;

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  1. Jeong, Kyeong-Soo & Garcia, Philip & Bullock, David S., 2003. "A statistical method of multi-market welfare analysis applied to Japanese beef policy liberalization," Journal of Policy Modeling, Elsevier, Elsevier, vol. 25(3), pages 237-256, April.
  2. Stelios D. Katranidis & Elisavet I. Nitsi & David S. Bullock, 2005. "The effects of EU corn, cotton, and sugar beet policies on Greek producers: a multimarket analysis," Agricultural Economics, International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 33(s3), pages 423-430, November.
  3. Stelios Katranidis & Gregory Kordas & Kostas Velentzas, 2003. "Welfare analysis and bootstrapping," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 10(6), pages 335-338.
  4. Dimitrios Dadakas & Stelios Katranidis, 2008. "Single Versus Multi-market Approach: An Application to the Greek Cotton Market," Atlantic Economic Journal, International Atlantic Economic Society, International Atlantic Economic Society, vol. 36(4), pages 469-481, December.
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Cited by:
  1. Dimitrios Dadakas & Stelios D. Katranidis, 2011. "Perspectives for the textiles and clothing industry in Greece: Past experience, outlook and policy implications," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 61(1-2), pages 13-38, January -.

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