Random utility models are widely used to study consumer choice. The vast majority of applications assume utility is linear in consumption of the outside good, which imposes that total expenditure on the subset of goods of interest does not affect demand for inside goods and restricts demand curvature and passthrough. We show that relaxing these restrictions can be important, particularly if one...

The public-health community views mandatory Front-of-Pack (FOP) nutrition labels and nutritional taxes as promising tools to control the growth of food-related chronic diseases. This paper uses household scanner data to propose an ex-ante evaluation and comparison of these two policy options for the fromage blanc and dessert yogurt market. In most markets, labelling is voluntary and firms displ...

There has been great focus in the recent trade theory literature on the introduction of firm heterogeneity into trade models. This introduction has highlighted the importance of the entry/exit decision of firms in response to changes in trade barriers. However, it is typical in many of these models to use iceberg transport costs as a general form of trade barriers that can be interchangeable wi...

This study analyses the impacts of the Goods and Services Tax (GST) introduced on 1 July 2000, and the associated wine tax reform, on both the premium and nonpremium segments of the grape and wine industry using a computable general equilibrium (CGE) model of the Australian economy. Through input cost reductions, the grape and wine industry is projected to gain from the GST tax package. Thus th...

This paper determines the effect that offset payments under the Continued Dumping and Subsidy Offset Act (CDSOA also known as the “Byrd Amendment”) have on tariff levels that are lobbied for by U.S. producer groups. We derive the optimum antidumping tariff that would maximize the welfare of producers receiving CDSOA offset payments. We compare and contrast this newly derived “optimal antidumpin...

s: In this paper, our focus is to see the impact of imperfect international capital mobility on tariff adjustment process between two countries. Assuming complete specialization of each country, the results show that the existence of an imperfect international capital market may trigger a gradual tariff adjustment. That is, when it takes time and causes idle capital in reallocating capital betw...

Abstract International transport costs do have an additive part. How large is it? Does it matter? This article provides new answers to these questions. Using information contained in the US imports flows from 1974 2019, we develop empirical model that disentangles ad-valorem and components of international costs. The per-unit component represents a sizeable share total costs, between 30% 45% de...

This paper develops the theory of the optimal tariff under the Byrd Amendment when producers are also processors. The optimal tariff in this case is equal to the optimal processor tariff (when the processor is not also a producer) and is smaller than the optimal producer tariff (when the producer is not also a processor). In a vertical market structure, the welfare of a producer/processor (P/P)...