The Impact of Quarantine Policies on the Quality of Imports
In a contribution to the sparse literature on the impacts on consumers of quarantine restrictions, an innovative approach to analysing the eﬀects of these policies on the prices and quality of imported products is proposed. Speciﬁcally, various index num- ber decompositions at diﬀerent aggregation levels are considered for extracting quality changes from changes in the value of an imported good. Consistent with theory, an empirical application to mango imports for Australia reveals an increase in the quality of the imported bundle after the introduction of a new quarantine restriction. We be- lieve this to the ﬁrst empirical evidence of the quality impact of biosecurity restrictions on imports.
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