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Disdier A-C. and Marette S. “The Combination of Gravity and Welfare Approaches for Evaluating Non-Tariff Measures.” American Journal of Agricultural Economics 92,3(2010): 713-726.

http://ajae.oxfordjournals.org/content/92/3/713.abstract
Abstract This article explores the link between gravity and welfare frameworks for measuring the impact of nontariff measures. First, an analytical approach suggests how to combine a gravity equation with a partial equilibrium model to determine the welfare impact of nontariff measures. Second, an empirical application focuses on the effects of a standard that caps antibiotic residues in crustaceans in the United States, the European Union, Canada, and Japan. While the econometric estimation of the gravity equation reports a negative impact on imports, welfare evaluations show that in most cases, a stricter standard leads to an increase in both domestic and international welfare.
by Jean Christophe BUREAU last modified 16-04-2010 19:51
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