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A comment on “Quality standards, industry structure, and welfare in a global economy”

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  • Dao‐Zhi Zeng

Abstract

Gaigné and Larue (American Journal of Agricultural Economics 98:1432–1449) examined the welfare implications of quality regulations within an international trade context, employing a general‐equilibrium framework. Their study uses a CES (Constant Elasticity of Substitution) model and finds that stricter public standards might improve welfare. However, this conclusion was actually derived from a partial‐equilibrium analysis. This note conducts a thorough general‐equilibrium analysis and demonstrates that their anticipated outcome does not hold within their CES framework.

Suggested Citation

  • Dao‐Zhi Zeng, 2026. "A comment on “Quality standards, industry structure, and welfare in a global economy”," American Journal of Agricultural Economics, John Wiley & Sons, vol. 108(3), pages 995-1002, May.
    • Handle: RePEc:wly:ajagec:v:108:y:2026:i:3:p:995-1002
    DOI: 10.1111/ajae.70002
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    References listed on IDEAS

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    1. Carl Gaigné & Bruno Larue, 2016. "Public quality standards and the food industry’s structure in a global economy," Review of Agricultural, Food and Environmental Studies, Springer, vol. 97(2), pages 141-148, September.
    2. Carl Gaigné & Bruno Larue, 2016. "Quality Standards, Industry Structure, and Welfare in a Global Economy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1432-1449.
    3. Swati Dhingra & John Morrow, 2019. "Monopolistic Competition and Optimum Product Diversity under Firm Heterogeneity," Journal of Political Economy, University of Chicago Press, vol. 127(1), pages 196-232.
    4. Macedoni, Luca & Weinberger, Ariel, 2022. "Quality heterogeneity and misallocation: The welfare benefits of raising your standards," Journal of International Economics, Elsevier, vol. 134(C).
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    Cited by:

    1. Dao‐Zhi Zeng, 2026. "A rejoinder to “Quality standards, industry structure, and welfare in a global economy”," American Journal of Agricultural Economics, John Wiley & Sons, vol. 108(3), pages 981-983, May.

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