Welfare Implications of Selected Supply and Demand Shocks on Producers and Marketers of U.S. Meats
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An equilibrium displacement model is developed and used to estimate the welfare impacts of government and industry-funded promotion programs, country of origin labeling (COOL), and the disease-driven, international bans on U.S. beef. The model goes beyond past studies by including the U.S. domestic market and both U.S. meat imports and exports, with meats differentiated by source of origin. The results indicate that while the benefits from beef and pork promotions are higher, the negative impacts of COOL are lower in a model with international
trade than in a model without trade. International bans on U.S. beef decrease the welfare of producers and marketers of U.S. beef.