Welfare Analysis of a Prohibitive NTM in a Society with a Proportion of Concerned Consumers
Mohammad Mahdi Ghodsi ()
No 2013-12, Working Papers from Faculty of Economic Sciences, University of Warsaw
The aim of this contribution is to provide a cost-benefit analysis in a partial equilibrium framework to investigate the welfare consequences of a non-tariff measure (NTM). The important issue of the analysis is having two groups of indifferent and concerned consumers. The ultimate aim of the paper is to investigate whether or not the paternalistic behavior of government is in line with the willingness of the consumers for demand. The existence of information about the origin of goods is the leading issue of the analysis that provides two different scenarios. The model is calibrated with data on consumption of shrimps. The findings suggest that in the existence of such information, NTM policy has the lowest international losses and highest domestic gains. The policy implication of these results suggests that governments should try to increase the information in the market when they are following good faith for imposition of NTM.
Keywords: welfare; trade policy; non-tariff measures; technical barriers to trade (search for similar items in EconPapers)
JEL-codes: D61 F13 (search for similar items in EconPapers)
Pages: 29 pages
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP97.pdf First version, 2013 (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:war:wpaper:2013-12
Access Statistics for this paper
More papers in Working Papers from Faculty of Economic Sciences, University of Warsaw Contact information at EDIRC.
Bibliographic data for series maintained by Marcin Bąba ().