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Welfare Impacts of BSE-Driven Trade Bans

Author

Listed:
  • Mutondo, Joao E.
  • Brorsen, B. Wade
  • Henneberry, Shida Rastegari

Abstract

There is often a need to respond quickly to assess the likely implications of policy changes. Here, an equilibrium displacement model is adapted to study international bans on U.S. beef. An equilibrium displacement model offers a convenient way of quickly predicting the effects of supply and demand shocks. The equilibrium displacement model used here has an international sector, which allows the study of issues that past models with only a domestic sector could not. The estimated welfare loss of U.S. beef producers, due to both Japanese and South Korean bans after the discovery of bovine spongiform encephalopathy (BSE) in the United States, is $565.31 million.

Suggested Citation

  • Mutondo, Joao E. & Brorsen, B. Wade & Henneberry, Shida Rastegari, 2009. "Welfare Impacts of BSE-Driven Trade Bans," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(3), December.
  • Handle: RePEc:ags:arerjl:59236
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    Cited by:

    1. Agyekum, Michael & Jolly, Curtis M., 2017. "Peanut trade and aflatoxin standards in Europe: Economic effects on trading countries," Journal of Policy Modeling, Elsevier, vol. 39(1), pages 114-128.
    2. Pozo, Veronica F. & Schroeder, Ted C., 2012. "Price and Volatility Spillover between Livestock and Related Commodity Markets," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124798, Agricultural and Applied Economics Association.
    3. Aldy, Joseph E. & Viscusi, W. Kip, 2013. "Risk Regulation Lessons from Mad Cows," Foundations and Trends(R) in Microeconomics, now publishers, vol. 8(4), pages 231-313, December.

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