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Welfare Impacts of BSE-Driven Trade Bans

Published online by Cambridge University Press:  15 September 2016

Joao E. Mutondo ,
B. Wade Brorsen  and
Shida Rastegari Henneberry
Joao E. Mutondo
Affiliation:
Department of Crop Production and Protection at Eduardo Mondlane University in Maputo, Mozambique
B. Wade Brorsen
Affiliation:
Department of Agricultural Economics at Oklahoma State University in Stillwater, Oklahoma
Shida Rastegari Henneberry
Affiliation:
Department of Agricultural Economics at Oklahoma State University in Stillwater, Oklahoma
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Abstract

There is often a need to respond quickly to assess the likely implications of policy changes. Here, an equilibrium displacement model is adapted to study international bans on U.S. beef. An equilibrium displacement model offers a convenient way of quickly predicting the effects of supply and demand shocks. The equilibrium displacement model used here has an international sector, which allows the study of issues that past models with only a domestic sector could not. The estimated welfare loss of U.S. beef producers, due to both Japanese and South Korean bans after the discovery of bovine spongiform encephalopathy (BSE) in the United States, is $565.31 million.

Keywords

equilibrium displacementinternational trademeattrade banwelfare
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 38 , Issue 3 , December 2009 , pp. 324 - 329
Copyright
Copyright © 2009 Northeastern Agricultural and Resource Economics Association 

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