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Assessing the Effects of Seasonal Tariff‐rate Quotas on Vegetable Prices in Switzerland

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  • Daria Loginova
  • Marco Portmann
  • Martin Huber

Abstract

Causal estimation of the short‐term effects of tariff‐rate quotas (TRQs) on vegetable producer prices is hampered by the large variety and different growing seasons of vegetables and is therefore rarely performed. We quantify the effects of Swiss seasonal TRQs on domestic producer prices of a variety of vegetables based on a difference‐in‐differences estimation using a novel dataset of weekly producer prices for Switzerland and neighbouring countries. We find that TRQs increase prices of most vegetables by more than 20% above the prices in neighbouring countries during the main harvest time for most vegetables and even more than 50% for some vegetables. The effects are stronger for more perishable vegetables and for conventionally produced ones compared with organic vegetables. However, we do not find clear‐cut effects of TRQs on the week‐to‐week price volatility of vegetables although the overall lower price volatility in Switzerland compared with neighbouring countries might be a result of the TRQ system in place.

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  • Daria Loginova & Marco Portmann & Martin Huber, 2021. "Assessing the Effects of Seasonal Tariff‐rate Quotas on Vegetable Prices in Switzerland," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 607-627, June.
  • Handle: RePEc:bla:jageco:v:72:y:2021:i:2:p:607-627
    DOI: 10.1111/1477-9552.12424
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    3. Santeramo, Fabio Gaetano & Martinez-Gomez, Victor & Márquez-Ramos, Laura & Lamonaca, Emilia, . "The Import Effects of the Entry Price System," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 49(1).
    4. Loginova, Daria, 2022. "Assessing the Short-term Effect of Exchange Rate Liberalisation on Food Import Prices: The Regression Discontinuity in Time Employed for Russian Food Markets in 2014," Research on World Agricultural Economy, Nan Yang Academy of Sciences Pte Ltd (NASS), vol. 3(3), September.
    5. Herz, Holger & Kistler, Deborah & Zehnder, Christian & Zihlmann, Christian, 2022. "Hindsight Bias and Trust in Government: Evidence from the United States," FSES Working Papers 526, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.
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    7. Youzhu Li & Miao Zhang & Jinsi Liu & Bingbing Su & Xinzhu Lin & Yuxuan Liang & Yize Bao & Shanshan Yang & Junjie Zhang, 2022. "Research on the Disturbance Sources of Vegetable Price Fluctuation Based on Grounded Theory and LDA Topic Model," Agriculture, MDPI, vol. 12(5), pages 1-14, April.
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    JEL classification:

    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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