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Differentiated Products And Supply Controls In The Analysis Of Agricultural Trade Liberalization: The Case Of Tobacco

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  • Beghin, John
  • Chang, Ruey-er

Abstract

A multimarket model of the U.S. tobacco and cigarette industries is used to demonstrate the fallacious implications of trade policy reform analysis that ignore imperfect substitution and supply controls. This omission underlies the PSE, nominal protection ratio, and price gap adjustment methodologies.

Suggested Citation

  • Beghin, John & Chang, Ruey-er, 1989. "Differentiated Products And Supply Controls In The Analysis Of Agricultural Trade Liberalization: The Case Of Tobacco," Department of Economics and Business - Archive 259448, North Carolina State University, Department of Economics.
    • Handle: RePEc:ags:ncbuar:259448
    DOI: 10.22004/ag.econ.259448
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    References listed on IDEAS

    as
    1. Agriculture and Trade Analysis Division, 1988. "Estimates of Producer and Consumer Subsidy Equivalents: Government Intervention in Agriculture, 1982-86," Staff Reports 278011, United States Department of Agriculture, Economic Research Service.
    2. Daniel A. Sumner & Julian M. Alston, 1987. "Substitutability for Farm Commodities: The Demand for U.S. Tobacco in Cigarette Manufacturing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 258-265.
    3. T. K. Warley, 1987. "Linkages between Bilateral and Multilateral Negotiations in Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(5), pages 940-945.
    4. Paul R. Johnson & Daniel T. Norton, 1983. "Social Cost of the Tobacco Program Redux," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(1), pages 117-119.
    5. Warley, T. K., 1987. "Linkages Between Bilateral And Multilateral Negotiations In Agriculture," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 269951, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Goodwin, Barry K. & Sumner, Daniel A. & Sparrow, D. Arthur, 1987. "Identification And Estimation Of Underlying Market Supply Function Parameters For A Commodity With Mandatory Output Controls," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 270139, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Anderson, James E, 1985. "The Relative Inefficiency of Quotas: The Cheese Case," American Economic Review, American Economic Association, vol. 75(1), pages 178-190, March.
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