Shadow pricing market access: A trade benefit function approach

Nancy Chau and Rolf Färe

Journal of Economic Theory, 2011, vol. 146, issue 4, 1631-1663

Abstract: Appropriate assessment of the social value of market access is at the core of a broad range of inquiries in trade research. We propose a new approach based on a trade benefit function to obtain the shadow value of net imports. Our approach is in keeping with well-established trade welfare measurement techniques, for the trade benefit function is dual to the standard trade expenditure function. This dual relation further allows for a direct retrieval of the shadow values of net imports from the trade benefit function. The operationality of our approach is demonstrated in a series of applications and simulations.

Keywords: Trade; benefit; function; Shadow; prices; of; net; imports (search for similar items in EconPapers)
Date: 2011
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Related works:
Working Paper: Shadow Pricing Market Access: A Trade Benefit Function Approach (2008)
Working Paper: Shadow Pricing Market Access: A Trade Benefit Function Approach (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:146:y:2011:i:4:p:1631-1663

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