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Welfare Impacts of BSE-Driven Trade Bans

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  • Mutondo, Joao E.
  • Brorsen, B. Wade
  • Henneberry, Shida Rastegari

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.

Suggested Citation

  • Mutondo, Joao E. & Brorsen, B. Wade & Henneberry, Shida Rastegari, 2009. "Welfare Impacts of BSE-Driven Trade Bans," Agricultural and Resource Economics Review, Cambridge University Press, vol. 38(3), pages 324-329, December.
    • Handle: RePEc:cup:agrerw:v:38:y:2009:i:03:p:324-329_00
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    Cited by:

    1. Şişman, Muhammet Yunus, 2017. "An Economic Welfare Analysis Of Agricultural Subsidies And Inventory Holdings: An Application To The Hazelnut Industry1," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 5(4), October.
    2. Chen‐Ti Chen & John M. Crespi & William Hahn & Lee L. Schulz & Fawzi Taha, 2020. "Long‐run impacts of trade shocks and export competitiveness: Evidence from the U.S. BSE event," Agricultural Economics, International Association of Agricultural Economists, vol. 51(6), pages 941-958, November.
    3. Aldy, Joseph E. & Viscusi, W. Kip, 2013. "Risk Regulation Lessons from Mad Cows," Foundations and Trends(R) in Microeconomics, now publishers, vol. 8(4), pages 231-313, December.
    4. Jurkėnaitė, Nelė & Djuric, Ivan, 2018. "Impact of the Russian trade bans on Lithuanian pork sector," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 40(4), pages 481-491.
    5. Pozo, Veronica F. & Schroeder, Ted C., 2012. "Price and Volatility Spillover between Livestock and Related Commodity Markets," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124798, Agricultural and Applied Economics Association.
    6. Agyekum, Michael & Jolly, Curtis M., 2017. "Peanut trade and aflatoxin standards in Europe: Economic effects on trading countries," Journal of Policy Modeling, Elsevier, vol. 39(1), pages 114-128.

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