2006–2010

An Empirical Assessment of the Welfare Effects of Reciprocal Dumping

Reprint No. 2006:12

Author(s): Richard Friberg and Mattias GanslandtYear: 2006 Title: Journal of International Economics Volume (No.): 70 (1) Pages: 1–24


Can two-way trade in similar products lead to lower welfare than if such trade was banned? Theory answers yes. To empirically investigate this proposition we examine Swedish imports of bottled water. Assuming one-shot (Bertrand and Coumot) competition, we can use the estimates from a structural model of demand to uncover marginal costs. We simulate the effect on consumer and producer surplus of banning imports. We do not find convincing evidence that banning imports would increase overall welfare. Given our choice of market this suggests we should not be overly concerned with the welfare effects of two-way trade in consumer goods that are close to homogenous.


Reference:
Friberg, Richard and Mattias Ganslandt (2006), "An Empirical Assessment of the Welfare Effects of Reciprocal Dumping". Journal of International Economics 70(1), 1–24.

Global index of the sharing economy

Timbro SEI

2018 Bergh Funcke Wernberg - Timbro Sharing Economy Index-1fHemsidan.jpg

Andreas Bergh, IFN and Lund University, is one of the authors of this book. The Timbro Sharing Economy Index is the first global index of the sharing economy. The index has been compiled using traffic volume data and scraped data, and provides a unique insight into the driving factors behind the peer-to-peer economy.

About the book

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