The Combination of Gravity and Welfare Approaches for Evaluating Non-Tariff Measures
This article explores the link between gravity and welfare frameworks for measuring the impact of nontariff measures. First, an analytical approach suggests how to combine a gravity equation with a partial equilibrium model to determine the welfare impact of nontariff measures. Second, an empirical application focuses on the effects of a standard that caps antibiotic residues in crustaceans in the United States, the European Union, Canada, and Japan. While the econometric estimation of the gravity equation reports a negative impact on imports, welfare evaluations show that in most cases, a stricter standard leads to an increase in both domestic and international welfare.
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|Date of creation:||Sep 2010|
|Publication status:||Published in American Journal of Agricultural Economics, Oxford University Press (OUP), 2010, 92 (3), pp.713-726. 〈10.1093/ajae/aaq026〉|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00825280|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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