The Combination of Gravity and Welfare Approaches for Evaluating Non-Tariff Measures

Anne-Célia Disdier and Stéphan Marette ()

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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.

Keywords: Gravity equation; Nontariff measures; Seafood welfare (search for similar items in EconPapers)
Date: 2010-09
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Citations: View citations in EconPapers (113)

Published in American Journal of Agricultural Economics, 2010, 92 (3), pp.713-726. ⟨10.1093/ajae/aaq026⟩

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Related works:
Journal Article: The Combination of Gravity and Welfare Approaches for Evaluating Nontariff 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:hal:journl:halshs-00825280

DOI: 10.1093/ajae/aaq026

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