The Combination of Gravity and Welfare Approaches for Evaluating Non-Tariff Measures - HAL-SHS - Sciences de l'Homme et de la Société
Journal Articles American Journal of Agricultural Economics Year : 2010

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

Anne-Célia Disdier
Stéphan Marette

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.

Dates and versions

halshs-00825280 , version 1 (23-05-2013)

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Anne-Célia Disdier, Stéphan Marette. The Combination of Gravity and Welfare Approaches for Evaluating Non-Tariff Measures. American Journal of Agricultural Economics, 2010, 92 (3), pp.713-726. ⟨10.1093/ajae/aaq026⟩. ⟨halshs-00825280⟩
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