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Effects Of The Suspension Agreement: U.S.-Mexico Fresh Tomatoes Antidumping Case

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  • Jung, Jione

Abstract

This paper analyzes the effects of the suspension agreement of the U.S.-Mexico fresh tomatoes antidumping cases on U.S. consumers. A linear and dynamic version of an inverse almost ideal demand system is developed to estimate consumer behavior. The measure of consumer welfare – compensating and equivalent variations – is derived specifically for the inverse demand system. The variation of cross-price flexibilities obviously reduced since the minimum export price system came into effect, but consumer welfare does not seem to change much in the circumstance. The consumers’ budget share on domestic fresh tomatoes is likely to reduce and it suggests that the suspension agreement may not guarantee the profit of domestic producers either.

Suggested Citation

  • Jung, Jione, 2009. "Effects Of The Suspension Agreement: U.S.-Mexico Fresh Tomatoes Antidumping Case," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49285, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea09:49285
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    File URL: http://purl.umn.edu/49285
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    References listed on IDEAS

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    1. Eales, James S. & Unnevehr, Laurian J., 1994. "The inverse almost ideal demand system," European Economic Review, Elsevier, pages 101-115.
    2. Grant, Jason H. & Foster, Kenneth A., 2005. "An Inverse Almost Ideal Demand System of Fresh Tomatoes in the U.S," 2005 Annual meeting, July 24-27, Providence, RI 19193, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Kathy Baylis & Jeffrey M. Perloff, 2010. "Trade diversion from tomato suspension agreements," Canadian Journal of Economics, Canadian Economics Association, vol. 43(1), pages 127-151, February.
    4. Hicks, J. R., 1986. "A Revision of Demand Theory," OUP Catalogue, Oxford University Press, number 9780198285502.
    5. Moschini, GianCarlo & Vissa, Anuradha, 1992. "A Linear Inverse Demand System," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(02), December.
    6. Brown, Mark G & Lee, Jonq-Ying & Seale, James L, Jr, 1995. "A Family of Inverse Demand Systems and Choice of Functional Form," Empirical Economics, Springer, vol. 20(3), pages 519-530.
    7. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    tomato; antidumping; inverse demand; consumer welfare; Demand and Price Analysis; International Relations/Trade;

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