Trade in feeder animals creates externalities when animal diseases can spread beyond the purchasing farm. If growers choose between open and closed production systems, then Nash equilibrium likely involves excessive trading. While first-best equilibrium involves market-wide adoption of either an...

Hypothetical bias is a persistent problem in stated preference studies. We propose and test a method for reducing hypothetical bias based on the cognitive dissonance literature in social psychology. A central element of this literature is that people prefer not to take inconsistent stands and...

Die indonesische Regierung mußte aufgrund zunehmender Haushaltsdefizite ihre Nahrungsmittelsubventionen reduzieren. Die sich ergebenden Preiserhöhungen hatten je nach Einkommensklasse der Bevölkerung sehr unterschiedliche Auswirkungen auf die Verbraucher. Die Autoren entwickeln eine...

The price-wedge method yields a tariff-equivalent estimate of technical barriers to trade (TBT). An extension of this method accounts for imperfect substitution between domestic and imported goods and incorporates recent findings on trade costs. We explore the sensitivity of this revamped TBT...