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Welfare Losses From Non‐Tariff Barriers: The Japanese Beef Quota Case

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  • MAKOTO YANO
  • RIKA TAKAHASHI
  • HIDEO MIZUNO

Abstract

A standard method of estimating deadweight losses caused by import quotas is to estimate a utility function by data over a period in which the quota is not imposed, and to use the estimated utility function to evaluate the virtual price of quota‐laden imports. This method, however, is not applicable if preferences are different between quota and non‐quota periods. In order to overcome this difficulty, the present study introduces a method of estimating a utility function directly from data in a quota period. This method is applied to the estimation of deadweight losses attributable to the Japanese beef quota.

Suggested Citation

  • Makoto Yano & Rika Takahashi & Hideo Mizuno, 2005. "Welfare Losses From Non‐Tariff Barriers: The Japanese Beef Quota Case," The Japanese Economic Review, Japanese Economic Association, vol. 56(4), pages 457-468, December.
    • Handle: RePEc:bla:jecrev:v:56:y:2005:i:4:p:457-468
    DOI: 10.1111/j.1468-5876.2005.00340.x
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