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Measuring Effective Protection as a Superlative Index Number: An Application to European Agriculture

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  • Jean-Christophe Bureau
  • Nicholas G. Kalaitzandonakes

Abstract

In this study duality and the theory of superlative index numbers are used to obtain a theoretically consistent Effective Protection Rate (EPR) index that imposes no a priori restrictions on input-output substitution possibilities. Within this framework, EPRs are estimated for European agriculture over the period 1973 to 1989. The empirical results demonstrate that maintaining zero input/output substitutability—a restriction embedded in all common protection measures—can lead to false results about the level of protection both across countries and time.

Suggested Citation

  • Jean-Christophe Bureau & Nicholas G. Kalaitzandonakes, 1995. "Measuring Effective Protection as a Superlative Index Number: An Application to European Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 279-290.
    • Handle: RePEc:oup:ajagec:v:77:y:1995:i:2:p:279-290.
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    File URL: http://hdl.handle.net/10.2307/1243538
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    Cited by:

    1. Maria Cipollina & Luca Salvatici, 2008. "Measuring Protection: Mission Impossible?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(3), pages 577-616, July.
    2. Olper, Alessandro & Raimondi, Valentina, 2008. "Consitutional Rules and Agricultural Policy Outcomes," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43870, European Association of Agricultural Economists.
    3. Miller, Andrew D. & Langley, Suchada V. & Chambers, William, 2003. "Current Issues Affecting Trade And Trade Policy: An Annotated Literature Review," Working Papers 14606, International Agricultural Trade Research Consortium.
    4. Joseph Francois & Ian Wooton, 2004. "Market Structure in Services and Market Access in Goods," Tinbergen Institute Discussion Papers 04-050/2, Tinbergen Institute.
    5. Youssef Chahed & Sophie Drogue & Luca Salvatici, 2001. "Protection du secteur agricole dans les pays tiers : un outil pour les négociations du Millenium Round," Working Papers hal-02827128, HAL.
    6. Scott Bradford, 2000. "Rents, Votes, and Protection: Explaining the Structure of Trade Barriers Across Industries," Econometric Society World Congress 2000 Contributed Papers 1717, Econometric Society.
    7. Fatah, Fazleen Abdul & Cramon-Taubadel, Stephan Von, 2017. "Profitability and Competitiveness of Rice Farming in Malaysia: A Policy Analysis Matrix," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 14(2), December.

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