Welfare Measurement Biases and Product Differentiation in Agriculture: An Example from the US Beef Sector
This paper examines the impact of two different model specifications on welfare estimations. A model specification that takes into account product differentiation is compared to a specification where the product differentiation is overlooked. The welfare comparison under both specifications show some biases of aggregation as well as ambiguous results: the welfare under one specification may be larger or lower than the welfare under the alternative assumption. In order to illustrate our theoretical conclusions, we present an application to the US beef market. We show that the welfare, when the product differentiation is taken into account, is smaller than the welfare when the product differentiation is omitted.
|Date of creation:||01 Feb 2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 01 30 81 53 30
Fax: 01 30 81 53 68
Web page: http://www4.versailles-grignon.inra.fr/economie_publique_eng
More information through EDIRC
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.:
- Fousekis, Panos & Revell, Brian J., 2002.
"Primary Demand for Red Meats in the United Kingdom,"
Cahiers d'Economie et de Sociologie Rurales (CESR),
INRA (French National Institute for Agricultural Research), vol. 63.
- Panos Fousekis & Brian J. Revell, 2002. "Primary Demand for Red Meats in the United Kingdom," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 63, pages 31-50.
- James, Jennifer S. & Alston, Julian M., 2002. "Taxes and quality: A market-level analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(3), September.
- Gracia, A. & Albisu, L. M., 1998.
"The demand for meat and fish in Spain: Urban and rural areas,"
Blackwell, vol. 19(3), pages 359-366, December.
- Gracia, A. & Albisu, Luis Miguel, 1998. "The demand for meat and fish in Spain: Urban and rural areas," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 19(3), December.
- Van Eenoo, Edward, Jr. & Peterson, Everett B. & Purcell, Wayne D., 2000. "Impact Of Exports On The U.S. Beef Industry," 2000 Conference, April 17-18 2000, Chicago, Illinois 18923, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
- Rickertsen, Kyrre, 1996. "Structural Change and the Demand for Meat and Fish in Norway," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 23(3), pages 316-30.
- Abigail Tiffin & Richard Tiffin, 1999. "Estimates of Food Demand Elasticities for Great Britain: 1972-1994," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(1), pages 140-147.
When requesting a correction, please mention this item's handle: RePEc:apu:wpaper:2006/02. 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: (RÃ©gis Grateau)
If references are entirely missing, you can add them using this form.