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Welfare Impacts of BSE-Driven Trade Bans

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

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.

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File URL: http://purl.umn.edu/59236
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Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

Volume (Year): 38 (2009)
Issue (Month): 3 (December)
Pages:

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Handle: RePEc:ags:arerjl:59236
Contact details of provider: Web page: http://www.narea.org/
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