scholarly journals Revisiting U.S. country of origin labeling trade damage estimates how does an equilibrium displacement model perform under different scenarios

2019 ◽  
Vol 67 (4) ◽  
pp. 349-361 ◽  
Author(s):  
William F. Hahn ◽  
Sharon S. Sydow ◽  
Warren P. Preston
Keyword(s):  
Country Of Origin ◽  
Equilibrium Displacement Model ◽  
Country Of Origin Labeling ◽  
Equilibrium Displacement ◽  
Displacement Model ◽  
Damage Estimates

scholarly journals Effects of Country of Origin Labeling in the U.S. Meat Industry with Imperfectly Competitive Processors

2009 ◽  
Vol 38 (3) ◽  
pp. 406-417 ◽  
Author(s):  
Chanjin Chung ◽  
Tong Zhang ◽  
Derrell S. Peel
Keyword(s):  
Price Elasticity ◽  
Country Of Origin ◽  
Import Price ◽  
Consumer Welfare ◽  
Domestic Demand ◽  
Meat Industry ◽  
Equilibrium Displacement Model ◽  
Country Of Origin Labeling ◽  
Imperfectly Competitive ◽  
The U.S

The study examines the impacts of implementing mandatory country of origin labeling (COOL) on producer and consumer welfare in the U.S. meat industry. The equilibrium displacement model developed in this study includes twenty-nine equations representing retail-, processing-, and farm-level equilibrium conditions for the beef, pork, and chicken industries. Unlike previous studies, the model allows trade between domestic- and foreign-origin products and considers the imperfectly competitive market structure of meat processers. Empirical results show that without a significant increase in domestic meat demand, producers are not expected to benefit from the mandatory COOL implementation. Results of a sensitivity analysis indicate that consumers tend to bear more COOL costs than producers, as the own-price elasticity becomes more inelastic, and that producers’ benefits increase as the elasticity of domestic demand becomes more elastic with respect to the price of imported products. The existence of market power in upstream and downstream markets of processors negatively affects both consumer and producer surplus. One implication of our findings is that U.S. beef and pork producers’ promotion and advertising programs would be successful in expanding domestic demand when the programs make the own-price elasticity of domestic demand more inelastic and the cross-price elasticity of domestic demand more elastic with respect to import price.

The Sustainable Forestry Initiative’s impact on stumpage markets in the US South

2005 ◽  
Vol 35 (8) ◽  
pp. 2056-2064 ◽  
Author(s):  
Roger Brown ◽  
Daowei Zhang
Keyword(s):  
Consumer Surplus ◽  
Sustainable Forestry ◽  
Consumer Welfare ◽  
Us South ◽  
Equilibrium Displacement Model ◽  
Equilibrium Displacement ◽  
The Us ◽  
Producer Surplus ◽  
Nonindustrial Private Forest ◽  
Displacement Model

Using survey data and an equilibrium displacement model, we estimate the market and economic impacts of the American Forest and Paper Association's Sustainable Forestry Initiative (SFI) on stumpage markets in the US South. We examine four timber product markets: softwood pulpwood, softwood sawtimber, hardwood pulpwood, and hardwood sawtimber. In each market we calculate changes in producer and consumer welfare using the equilibrium displacement model that accounts for reductions in timber inventories caused by SFI compliance. We find that SFI compliance costs the US South's economy about $36 million annually. SFI-compliant stumpage producers lose more than $33 million each year in producer surplus as a result of SFI compliance, and consumers lose about $12 million annually in consumer surplus due to higher product prices. These costs are offset partially by benefits to nonindustrial private forest producers, non-SFI-compliant industry producers, and public forest producers, who collectively gain about $10 million in producer surplus annually as a result of higher stumpage prices.

scholarly journals Gluten-Free: Where’s the Beef?

2020 ◽  
Vol 52 (2) ◽  
pp. 308-334
Author(s):  
Aaron M. Ates ◽  
Jayson L. Lusk
Keyword(s):  
Food Production ◽  
Consumer Welfare ◽  
Alcoholic Beverages ◽  
Gluten Free ◽  
Equilibrium Displacement Model ◽  
Food Away From Home ◽  
Equilibrium Displacement ◽  
Displacement Model ◽  
Retail Food ◽  
Modest Reduction

AbstractThis research seeks to determine effects of rising interest in gluten-free foods on U.S. retail food demand and, ultimately, producer and consumer welfare. Increased gluten-free interest led to a modest reduction in cereals and bakery demand and increases in meat, alcoholic beverages, and food away from home demand. Combining estimated effects with an equilibrium displacement model suggests the reduction in cereal and bakery demand decreases wheat and barley producer profits by US$7.2 million/year. After accounting for positive demand impacts on other products, results indicate wheat and barley supply is redistributed away from food production into animal production, increasing wheat producer welfare.

scholarly journals New Varieties and the Returns to Commodity Promotion: The Case of Fuji Apples

2000 ◽  
Vol 29 (1) ◽  
pp. 10-23 ◽  
Author(s):  
Timothy J. Richards ◽  
Paul M. Patterson
Keyword(s):  
Positive Impact ◽  
Consumer Experience ◽  
Consumer Learning ◽  
Apple Variety ◽  
Equilibrium Displacement Model ◽  
Equilibrium Displacement ◽  
Producer Surplus ◽  
New Varieties ◽  
Fuji Apple ◽  
Displacement Model

The Fuji apple variety is relatively new in the U.S. As a new product, questions concern the relative impact of consumer learning by experience, by variety-specific promotion, or by generic apple promotion. A two-stage (LES/LAIDS) model incorporating both types of promotion is used to estimate the effect of generic and variety specific promotion, as well as consumer experience, on the demand for Fuji apples. Estimates show each to have a positive impact, and also show new or specialty apple varieties to be relatively price inelastic, but income elastic. Grower returns to promotion are calculated with an equilibrium displacement model of price changes and producer surplus. Changes in producer surplus provide a base-scenario benefit:cost ratio of 6.33:1.

Fertilizer industry subsidies in China: who are the beneficiaries?

2014 ◽  
Vol 6 (3) ◽  
pp. 433-451 ◽  
Author(s):  
Sheng Li ◽  
Yaoqi Zhang ◽  
Denis Nadolnyak ◽  
John David Wesley ◽  
Yifei Zhang
Keyword(s):  
Target Groups ◽  
Allocation Pattern ◽  
Content Type ◽  
Equilibrium Displacement Model ◽  
Fertilizer Industry ◽  
Total Surplus ◽  
Equilibrium Displacement ◽  
Multi Stage ◽  
Subsidy Incidence ◽  
Displacement Model

Purpose – Since 2004, subsidies increased by 670 percent in the Chinese fertilizer industry to reduce the farmer's burden. The purpose of this paper is to assess whether subsidies benefit the target groups, the fertilizer subsidy distribution pattern and benefit allocation pattern among fertilizer producers and other sectors were investigated. Design/methodology/approach – The Muth model is extended to evaluate the impacts of a subsidy on multi-stage markets. Findings – It is found that the total benefits from the policy are about RMB 7.7 billion yuans. The fertilizer suppliers gain about RMB 51 billion yuans from the favorable policy with mean subsidy incidence 0.8 and capturing about 70 percent of total surplus. Social implications – The results suggest that transferring parts of subsidies to the non-fertilizer sectors could be considered an efficient way to redistribute welfare indifferent sectors. Originality/value – This study first use the equilibrium displacement model to quantity the distribution of fertilizer subsidy in a vertical market in China.

scholarly journals Impactos potenciais do Protocolo de Cartagena sobre biossegurança nas exportações brasileiras de soja

2010 ◽  
Vol 48 (2) ◽  
pp. 283-306
Author(s):  
Débora da Costa Simões ◽  
Heloisa Lee Burnquist
Keyword(s):  
Equilibrium Displacement Model ◽  
Equilibrium Displacement ◽  
Displacement Model

O objetivo deste trabalho é verificar os impactos do Protocolo de Cartagena sobre Biossegurança (PCB) para o Brasil no mercado internacional, dado que o País foi o único grande exportador de commodities agrícolas que o ratificou. A análise centrou-se nas discussões do Artigo 18 e no mercado de soja. Calcularam-se os custos adicionais de identificação para Brasil, Argentina e Estados Unidos, com base em propostas feitas durante as negociações. Os números mostraram que esses custos são mais elevados no Brasil e que a diferença em relação aos países concorrentes aumenta quando as exigências de identificação tornam-se mais rígidas. Para verificar o impacto desses custos no mercado internacional, utilizou-se o Equilibrium Displacement Model (EDM) e definiram-se dois cenários. Em um deles, apenas o Brasil cumpriria as normas do PCB e em outro, Argentina e EUA também adotariam medidas equivalentes. Os resultados evidenciaram que ambas as situações implicariam em perdas para o Brasil, que poderiam chegar a US$ 133 milhões no Cenário 1 e a US$ 329 milhões no Cenário 2. Para os outros países, o Cenário 2 apresenta dados mais favoráveis. Dessa forma, espera-se que Argentina e EUA adotem medidas semelhantes às exigidas pelo PCB, no qual o Brasil incorre em perdas maiores.

Price and Quantity Effects of Canada's Dairy Advertising Programs

1995 ◽  
Vol 24 (2) ◽  
pp. 199-210 ◽  
Author(s):  
Henry W. Kinnucan ◽  
Evelyn T. Belleza
Keyword(s):  
Dairy Product ◽  
Support Program ◽  
Model Parameters ◽  
Price Support ◽  
Ceteris Paribus ◽  
Equilibrium Displacement Model ◽  
Equilibrium Displacement ◽  
Short Run ◽  
Retail Demand ◽  
Displacement Model

An equilibrium-displacement model is combined with econometric estimates of key model parameters to identify the impacts of Canada's dairy advertising programs on prices and quantity. Results suggest increased advertising of fluid milk enhances the farm value of milk but has minimal effect on government costs of the dairy price-support program. Owing to government intervention in the butter market, increased butter advertising has no effect on the farm value of milk, at least in the short run, but is highly effective at reducing government costs. Advertising is most effective,ceteris paribus, in markets where retail demand and wholesale supply for the specific dairy product are relatively price inelastic.

scholarly journals THE IMPACT OF BIOFUELS POLICY AND DROUGHT ON THE U.S. GRAIN AND LIVESTOCK MARKETS

2015 ◽  
Vol 47 (1) ◽  
pp. 77-103 ◽  
Author(s):  
SUNIL P. DHOUBHADEL ◽  
AZZEDDINE M. AZZAM ◽  
MATTHEW C. STOCKTON
Keyword(s):  
Equilibrium Displacement Model ◽  
Equilibrium Displacement ◽  
Livestock Markets ◽  
Corn Prices ◽  
Distillers Grain ◽  
Corn Distillers ◽  
Biofuels Policy ◽  
The Impact ◽  
Displacement Model ◽  
The U.S

AbstractThis article examines the impact of the 2012 drought and the biofuels mandate on the U.S. grain and livestock markets and estimates the mandate waiver required to offset the impact on the corn price. The framework used is a stochastic equilibrium displacement model that integrates the beef, pork, and poultry markets with the corn, distillers’ grain, soybean, soymeal, and ethanol markets. The corn and beef markets are found to be the most vulnerable. A mandate waiver of approximately 23% is required to fully negate the impact of the drought on corn prices. The waiver is equivalent to a 13.7% reduction in ethanol consumption.

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