Welfare Analysis of a Prohibitive NTM in a Society with a Proportion of Concerned Consumers
AbstractThe aim of this contribution is to provide a cost-benefit analysis in a partial equilibrium framework to investigate the welfare consequences of a non-tariff measure (NTM). The important issue of the analysis is having two groups of indifferent and concerned consumers. The ultimate aim of the paper is to investigate whether or not the paternalistic behavior of government is in line with the willingness of the consumers for demand. The existence of information about the origin of goods is the leading issue of the analysis that provides two different scenarios. The model is calibrated with data on consumption of shrimps. The findings suggest that in the existence of such information, NTM policy has the lowest international losses and highest domestic gains. The policy implication of these results suggests that governments should try to increase the information in the market when they are following good faith for imposition of NTM.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Faculty of Economic Sciences, University of Warsaw in its series Working Papers with number 2013-12.
Length: 29 pages
Date of creation: 2013
Date of revision:
welfare; trade policy; non-tariff measures; technical barriers to trade;
Find related papers by JEL classification:
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-06-04 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Philip L. Paarlberg & John G. Lee, 1998. "Import Restrictions in the Presence of a Health Risk: An Illustration Using FMD," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 80(1), pages 175-183.
- Mohammad Mahdi Ghodsi, 2013. "Corruption and the Level of Trade Protectionism," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, Faculty of Economic Sciences, University of Warsaw, vol. 30.
- Maskus, Keith E. & Wilson, John S. & Tsunehiro Otsuki, 2000. "Quantifying the impact of technical barriers to trade : a framework for analysis," Policy Research Working Paper Series 2512, The World Bank.
- Frank van Tongeren & John Beghin & Stéphane Marette, 2009.
"A Cost-Benefit Framework for the Assessment of Non-Tariff Measures in Agro-Food Trade,"
OECD Food, Agriculture and Fisheries Papers
21, OECD Publishing.
- van Tongeren, Frank & Beghin, John C. & Marette, Stephan, 2009. "A Cost-Benefit Framework for the Assessment of Non-Tariff Measures in Agro-Food Trade," Staff General Research Papers, Iowa State University, Department of Economics 13146, Iowa State University, Department of Economics.
- Emma Aisbett & Lee M. Pearson, 2012. "Environmental and Health Protections, or New Protectionism? Determinants of SPS Notifications by WTO Members," Crawford School Research Papers, Crawford School of Public Policy, The Australian National University 1213, Crawford School of Public Policy, The Australian National University.
- Beghin, John & Disdier, Anne-Célia & Marette, Stéphan & Van Tongeren, Frank, 2012. "Welfare costs and benefits of non-tariff measures in trade: a conceptual framework and application," World Trade Review, Cambridge University Press, Cambridge University Press, vol. 11(03), pages 356-375, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marcin Bąba).
If references are entirely missing, you can add them using this form.