Price Policies and the Domestic and International Distribution of Commodity Quality

Theory and application to EU wheat
  • Julian M. Alston
  • Jennifer S. James

Abstract

Most studies of agricultural commodity price policies ignore quality responses.1 Typically, it is assumed that the commodity of interest is homogeneous, and no allowance is made for any policy-induced changes in quality or in the distribution of quality (i.e., average quality).2 This might be a good approximation in some cases. Recently, however, James (2000a) reported a closed-economy model of stereotypical domestic agricultural commodity policies, in which she found that quality responses might be significant and could substantially alter the welfare implications of policy alternatives.3 In this chapter, we adopt the same general approach, and adapt and extend it to evaluate the quality impacts of both domestic and border policies applied to agricultural commodities in an open-economy setting.

Keywords

European Union Average Quality Export Subsidy Import Tariff Agric Econ 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 2002

Authors and Affiliations

  • Julian M. Alston
    • 1
  • Jennifer S. James
    • 2
  1. 1.Department of Agricultural and Resource EconomicsUniversity of CaliforniaDavisUSA
  2. 2.Department of Agricultural Economics and Rural SociologyPennsylvania State UniversityUSA

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