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Food Quality Standards in Equilibrium Models: A Discussion of Current Modeling Approaches

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  • Nolte, Stephan
  • Rau, Marie-Luise

Abstract

Throughout recent year food quality standards have become a ubiquitous phenomenon that nationally and globally influences agri-food markets. With equilibrium models commonly used in the quantitative analysis of market and trade effects, we review possible approaches to modeling standards existent in the literature, elaborate the reasoning behind them and discuss their suitability to reflect "real world" situations. While the modeling approaches identified may respectively depict a specific situation, they may not be appropriate in others. That is they capture certain effects of standards only. With increasing ability to account for the various effects of standards, the modeling approaches become more complex and the data requirements increase.

Suggested Citation

  • Nolte, Stephan & Rau, Marie-Luise, 2006. "Food Quality Standards in Equilibrium Models: A Discussion of Current Modeling Approaches," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25653, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25653
    DOI: 10.22004/ag.econ.25653
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    References listed on IDEAS

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    1. Mattias Ganslandt & James R. Markusen, 2001. "Standards and Related Regulations in International Trade: A Modeling Approach," NBER Working Papers 8346, National Bureau of Economic Research, Inc.
    2. Ganslandt, Mattias & Markusen, James R., 2001. "National Standards and International Trade," Working Paper Series 547, Research Institute of Industrial Economics.
    3. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
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