Country of Origin Labeling (C.O.O.L.): How cool is it?

详细信息    查看全文

• 作者：Elias Dinopoulos ; Grigorios Livanis ; Carol West
• 关键词：Country-of-origin labeling ; Protection ; Product safety ; Welfare ; Insurance markets
• 刊名：International Review of Economics and Finance
• 出版年：2010
• 出版时间：October 2010
• 年：2010
• 卷：19
• 期：4
• 页码：575-589
• 全文大小：339 K

文摘

This paper develops a partial-equilibrium model of a small open-economy trading an unsafe product. The model is used to analyze the welfare effects of trade with and without a country-of-origin labeling (COOL) program. The welfare gains from trade in the absence of COOL are ambiguous, may justify the imposition of a trade ban. Even if a full ban does not improve welfare and some restriction of trade is always welfare-enhancing. Under a tariff regime, more COOL trade is better than less trade. Independently of domestic market power, free trade coupled with a COOL program maximizes national welfare.