Some Economic Implications of the COVID-19 Pandemic in Nebraska

It is now clear that the spread, mortality and morbidity impacts of the coronavirus pandemic are sizeable but extremely heterogeneous across multiple dimensions. Geography shows that places with lower human con-centrations (urban/rural divide) and away from main travel axes, such as major interstate highways and in-ternational airports, have a lower incidence of cases. Large urban centers with high human concentrations have been much disproportionally affected and with much higher mortality rates. Age and health status are equally important. Mortality increases dramatically for people 60 years old and older. People with comorbidi-ties (cardiovascular, obesity, diabetes, and others) are much more likely to be hospitalized and die of COVID -19 than are healthy people. Family and household composition is also important. Multigenerational households are much more common in say Italy than in Sweden. Swedish households tend to live more inde-pendently often in one-person households, which pro-vides some “cultural” self-isolation, which is helpful in case of a pandemic. In addition, medical infrastructure and preparedness vary greatly across states with devas-tating consequences like in New York City, partly be-cause the pandemic hit early, and partly because of the lack of intensive care unit (ICU) infrastructure (COVID-19 Project). States in the Midwest had more time to prepare and learn to ramp up testing etc

Nontariff Barriers

Nontariff barriers (NTBs) refer to the wide range of policy interventions other than border tariffs that affect trade of goods, services, and factors of production. Most taxonomies of NTBs include market-specific trade and domestic policies affecting trade in that market. Extended taxonomies include macro-economic policies affecting trade. NTBs have gained importance as tariff levels have been reduced worldwide. Common measures of NTBs include tariff-equivalents of the NTB policy or policies and count and frequency measures of NTBs. These NTB measures are subsequently used in various trade models, including gravity equations, to assess trade and/or welfare effects of the measured NTBs.

Trade and Environmental Policy Instruments and Reforms

Abstract not available

Disentangling the Demand-enhancing Effect and Trade-cost Effect of Technical Measures in Agricultural Trade among OECD countries

Domestic technical measures such as SPS and TBTs can enhance import demand via information disclosure and quality improvement, or hamper foreign export supply via imposing sizeable compliance costs, or both. The traditional gravity equation model estimates the net effect of these measures on international trade with a loss of useful inference on separate effects. We stipulate a generalized gravity equation model to disentangle the two effects. We apply the augmented approach to agricultural trade among OECD countries in 2004. We find that technical measures in agriculture often jointly enhance import demand and hinder export supply with the net effect of promoting the propensity to trade. Further disaggregated data analysis reveals heterogeneity across sectors in terms of net effects of technical measures, despite common demand-enhancing and supply-hindering effects. These measures in the net decrease the probability of intra-OECD trade in dairy products, whereas they increase that of intra-OECD trade in cereal preparations.sanitary and phytosanitary, SPS, technical measures, NTM, TBT, standards, gravity equation, protectionism, OECD, International Relations/Trade,

Economics of Domestic Cultural Content Protection in Broadcasting, The

We analyze the economics of domestic cultural content protection in terrestrial broadcasting, the most widespread policy instrument used in broadcasting. Using the love-of-variety approach, we model a representative consumer deriving utility from broadcasting services net of advertising,and allocating scarce time between consuming the various broadcasting services and leisure. Advertising is a nuisance; it costs time yet brings no utility. Broadcasting is a pure public good; broadcasters make profit in the monopolistic competition environment by bundling advertising with valuable cultural content. We impose a discrete domestic content requirement and then investigate the effects of its marginal changes on consumption of domestic broadcasting. Domestic content requirement may reduce (increase) consumption of domestic programs when consumer's demand is highly elastic (inelastic), the degree of preference for foreign content over domestic content is high (low) and opportunity cost of listening time is high (low). The reduction occurs because the consumer reshuffles her consumption bundle towards leisure away from high domestic-content stations thereby reducing the overall aggregate consumption of broadcasting, and subsequently, the overall aggregate consumption of domestic programs.boradcasting; domestic content; radio; cultural protection

Are Standards Always Protectionist?

We analyze the effects of a domestic standard that reduces an externality associated with the consumption of the good targeted by the standard, using a model in which foreign and domestic producers compete in the domestic good market. Producers can reduce expected damage associated with the externality by incurring a cost that varies by source of origin. Despite potential protectionism, the standard is useful in correcting the consumption externality in the domestic country. Protectionism occurs when the welfare-maximizing domestic standard is higher than the international standard maximizing welfare inclusive of foreign profits. The standard is actually anti-protectionist when foreign producers are much more efficient at addressing the externality than are domestic producers. Possible exclusion of domestic or foreign producers arises with large standards, which may alter the classification of a standard as protectionist or non-protectionist. The paper provides important implications for the estimation and use of tariff equivalents of nontariff barriers. JEL Classification Code: F13externality; nontariff barriers; protectionism; safety; standard; tariff equivalent

The Trade and Welfare Impact of Australian Quarantine Policies: The Case of Pigmeat

Abstract: We analyze the trade and welfare impact of quarantine measures imposed by Australiaon imports of pigmeat. In particular, we account for changes to Australia’s pigmeat quarantinepolicy over time including those changes related to the recent resolution of a WTO disputebetween Australia and the European Union. Using a random utility model, and applying it tocorner solutions in import decisions, tariff equivalents (by major trading partner) are estimatedfor the different pigmeat quarantine regimes implemented by Australia during the period 1988-2009. The welfare impact on consumers, producers, and foreign exporters is computed using apartial equilibrium model calibrated on the econometric estimates. The quarantine regimes havea strong effect on trade and welfare with a tariff equivalent above 113% of average real worldprices over the period analyzed.pigmeat; pork; australia; non-tariff measure; NTM; quarantine; import ban; trade

Does European Aflatoxin Regulation Hurt Groundnut Exporters from Africa?

We provide an ex-post econometric examination of the harmonization and tightening of the EU Maximum Residues Limit (MRL) on aflatoxins in 2002, and its impact on African exports of groundnut products. We show that the MRL set by the EU has no significant trade impact on groundnut exports from Africa across various methods of estimation. African domestic supply plays an important role in the determination of the volumes of trade and the propensity to trade. Our findings suggest that the trade potential of African groundnut exporters is more constrained by domestic supply issues rather than by limited market access.food safety; standards; aflatoxin; MRL; groundnut; Africa; EU; market access

U.S. TRADE THREATS: RHETORIC OR WAR?

International Relations/Trade,

Are Eco-Labels Valuable? Evidence from the Apparel Industry

Using U.S. apparel catalog data, we estimate hedonic price functions to identify market valuation of environmental attributes of apparel goods. We identify a significant and robust premium for the organic fibers embodied in the apparel goods. We also find a discount for the "no-dye" label. We do not, however, find any evidence of a premium for environment-friendly dyes. We further investigate the pricing behavior of apparel suppliers for potential heterogenous pricing of the organic-fiber attribute and find no evidence of different premia across firms. A reprint of an article in the AJAE in 1999.eco-labels; organic-cotton apparel; dyes; hedonic price; labeling; textiles; green label