The Combination of Gravity and Welfare Approaches for Evaluating Nontariff Measures

Anne-Célia Disdier and Stéphan Marette ()

American Journal of Agricultural Economics, 2010, vol. 92, issue 3, 713-726

Abstract: 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. Copyright 2010, Oxford University Press.

Date: 2010
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Working Paper: The Combination of Gravity and Welfare Approaches for Evaluating Non-Tariff Measures (2010)
Working Paper: The Combination of Gravity and Welfare Approaches for Evaluating Non-Tariff Measures (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:92:y:2010:i:3:p:713-726

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