MEASURING EFFECTIVE PROTECTION AS A SUPERLATIVE INDEX NUMBER - AN APPLICATION TO EUROPEAN AGRICULTURE

Citation
Jc. Bureau et Ng. Kalaitzandonakes, MEASURING EFFECTIVE PROTECTION AS A SUPERLATIVE INDEX NUMBER - AN APPLICATION TO EUROPEAN AGRICULTURE, American journal of agricultural economics, 77(2), 1995, pp. 279-290
Citations number
39
Categorie Soggetti
Economics,"AgricultureEconomics & Policy
ISSN journal
00029092
Volume
77
Issue
2
Year of publication
1995
Pages
279 - 290
Database
ISI
SICI code
0002-9092(1995)77:2<279:MEPAAS>2.0.ZU;2-9
Abstract
In this study duality and the theory of superlative index numbers are used to obtain a theoretically consistent Effective Protection Rate (E PR) index that imposes no a priori restrictions on input-output substi tution possibilities. Within this framework, EPRs are estimated for Eu ropean agriculture over the period 1973 to 1989. The empirical results demonstrate that maintaining zero input/output substitutability-a res triction embedded in all common protection measures-can lead to false results about the level of protection both across countries and time.