COOL Effects on U.S. Shrimp Trade
We investigate the economic impact of partial implementation of COOL on U.S. shrimp trade by developing a conceptual model that encompasses horizontal and vertical product differentiation. Horizontal differentiation is characterized by explicitly accounting for differences in shrimp processing – fresh or frozen versus peeled, canned, or breaded. Vertical differentiation in the conceptual model is captured by two scenarios – presence and absence of COOL – on trade between major shrimp exporters and United States. COOL implementation results in quality disclosure through origin labeling and additional costs of labeling on fresh and frozen shrimp sold at retail while processed shrimp products are excluded from labeling. The conceptual model indicates a change in product mix with COOL implementation: the relative share of processed shrimp increases when compared to unprocessed shrimp. Empirically testing the hypothesis using an econometric model shows there is no change in the product mix in the two scenarios. The results however change depending on the choice of variable used to proxy quality.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Anonymous, 2003. "International Trade And Food Safety: Economic Theory And Case Studies," Agricultural Economics Reports 33941, United States Department of Agriculture, Economic Research Service.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea13:151217. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.