Demand for healthy, safe, and environmentally friendly food products has been increasing. In response, producers are marketing organic and other quality-differentiated foods, sometimes claiming to have followed sound environmental and animal welfare practices. These products frequently have unobservable quality attributes. If the profit-maximizing producer is able to deceive the consumer with a false claim, then he or she will enjoy a higher price with lower production costs (compared to the full disclosure outcome). The analysis described in this paper shows that repeat-purchase relationships and third-party monitoring are required for high-quality credence goods to be available. Policy implications of this analysis for national organic food standards are discussed.

The Fuji apple variety is relatively new in the U.S. As a new product, questions concern the relative impact of consumer learning by experience, by variety-specific promotion, or by generic apple promotion. A two-stage (LES/LAIDS) model incorporating both types of promotion is used to estimate the effect of generic and variety specific promotion, as well as consumer experience, on the demand for Fuji apples. Estimates show each to have a positive impact, and also show new or specialty apple varieties to be relatively price inelastic, but income elastic. Grower returns to promotion are calculated with an equilibrium displacement model of price changes and producer surplus. Changes in producer surplus provide a base-scenario benefit:cost ratio of 6.33:1.

Productivity of U.S. farmers by age is measured by non-parametric programming using 1992 Census data, decomposed into efficiency and technology Malmquist index components.

Productivity increases slightly with age and then decreases. In most states productivity variations are from technology use rather than efficiency differences.

An understanding of the empirical relationship between income and environmental quality is evolving through recent studies investigating the Environmental Kuznets Curve (EKC). The EKC represents an inverted-U relationship between income and environmental degradation. However, studies may employ different methods, evaluate different environmental indicators, and use different data, resulting in a broad spectrum of findings and leading to sometimes conflicting interpretations. The purpose of this paper is to synthesize the results of existing EKC findings by conducting a statistical meta-analysis, and to predict new income turning points (ITP). Results indicate how both methodological choices and pollutant types affect ITPs. (JEL Q20).

Using a survey of over 320 consumers from across the state of Indiana, we estimate an ordered probit model to determine the demographic and attitudinal factors which are most important in predicting the likelihood of consumers to purchase products that are produced within the state. Our results indicate that the willingness to purchase locally produced agricultural products increases with time of residency in the state, and we find a greater tendency for female consumers to purchase such products. We also find that quality perceptions play a critical role in these food purchase decisions. We underscore the importance of maintaining minimum quality standards to maximize the effectiveness of state level agricultural promotion programs.

The Uruguay Round Agreement on Agriculture (URAA) put in place a set of rules that may, in the future, have significant effects on the conditions for market access for agricultural products. Bound tariffs replaced non-tariff barriers in most cases, and rules facing exporters are now more transparent. In addition, minimum access commitments were made through the use of import quotas, with a lower tariff for imports within the quota. Although agriculture is now integrated into the multilateral trading system, most commentators agree that the URAA did little actually to liberalize agricultural trade. Bound out-of-quota tariffs remain very high while quotas have resulted in the institutionalization of rents for specific countries and firms or state trading enterprises, thereby potentially increasing resistance by these stakeholders to any trade liberalization initiatives.

This paper analyzes the economics of two-tier tariff import quotas (TRQs) and implications of alternative trade liberalization scenarios. The Uruguay Round Agreement on Agriculture had tariffs replace nontariff barriers as the protective mechanism while quotas ensured minimum trade flows. Our framework isolates the effects of changes either in the second-tier tariff, and first-tier tariff, or the quota. We show how market conditions or relative policy instrument levels determine which tariff or quota affects trade and domestic and world prices. Whether or not exporting countries have been allocated export quotas and the procedures for the distribution of the rights to export and import also influences the efficiency of TRQs.

The European Union has opened tariff rate quotas (TRQs) after the Uruguay Round (UR), following the agreement that minimum access should be provided and current access not be restricted. The EU TRQs are described and their origin is explained. Descriptive statistics are provided in order to assess the implementation of the market access provisions of the 1994 UR Agreement. Transparency of the EU TRQ system and fill rates of TRQs are examined. Overall, the EU's record in the area of TRQs is relatively satisfactory, compared with those of other countries. Concerns remain, however, as to the exact articulation of the (regional) Europe Agreement and some quotas under minimum access.

U.S. peanut, sugar, and tobacco tariff rate quotas (TRQs) are allocated to suppliers on an historical market share basis. Once allocated they become difficult to redistribute to accommodate changes in comparative advantage among suppliers. The distribution of trade departs increasingly from the tariff-equivalent distribution advocated by the WTO principle of nondiscrimination. Article ΧIII of the GATT regarding the rules for historical allocation is examined and applied to four cases of historical allocation: domestic tobacco quota and TRQs for peanuts, sugar and tobacco. The difference between the law enforcement objective of the WTO and the Pareto optimization objective assumed by economists is stressed throughout.

As the result of Uruguay Round negotiations, Korea and Japan established tariff rate quotas (TRQs) for agricultural imports. Both countries allocate the TRQs with various methods that show different fill rates and welfare implications. The state trading enterprises play important roles in TRQ administration in both countries. The TRQs contributed to increased imports. However, the transparency and commercial consideration in administering the TRQs remain a concern and the access for some commodities seems to be less open than would be the case if quota amounts were made available on a purely commercial basis.

To analyze Canada's Tariff Rate Quota (TRQ) administration, a model of efficient quota administration is put forward. After examining the operation of the Canadian TRQ system for its twenty-one TRQs, conclusions are drawn. In general this system has worked well in Canada. The quotas are almost all filled, and the administration is transparent and not costly for quota-holders to use. Among the international lessons from Canada's experience are that few WTO rules may be needed in this area, aside from steps to ensure the TRQ is fully available to users and can be freely transferred among them.

Tariff rate quota administration and implementation are empirically evaluated for the fourteen developing countries notifying the WTO of the use of TRQs. FAO trade data, UNCTAD data on applied tariffs and the WTO notifications permit us to assess underfill of quotas, discrimination among exporters, use of state trading as an implementation mechanism, and the extent of protection under these TRQs. Substantial liberalization was found, generally due to use of low MFN tariffs rather than through TRQs permitting greater market access. High tariff bindings and endogenous quotas allow these countries to pursue flexible trade regimes within their WTO commitments.