MODELING TECHNICAL TRADE BARRIERS UNDER UNCERTAINTY
By: Ker, Alan P.
Ker, Alan P., MODELING TECHNICAL TRADE BARRIERS UNDER UNCERTAINTY, Journal of Agricultural and Resource Economics, Volume 25, Issue 1, July 2000, Pages 28-50
As traditional forms of agricultural protection continue to decline, agricultural interests will likely seek alternative protection in the form of technical barriers. A flexible framework for theoretically and empirically analyzing technical barriers under various sources of uncertainty is derived. Attention is focused on uncertainty arising from the variation in the product attribute levels, a source not yet considered by the literature. Ex ante and ex post densities of domestic and international quantities and prices as well as the densities of their respective extreme-order statistics are derived. An example is presented to illustrate the application of the developed framework.