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Truth vs. beauty: Essays on standar...

Tothova, Monika.

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Truth vs. beauty: Essays on standards, trade, and agreements.

Record Type:	Electronic resources : Monograph/item
Title/Author:	Truth vs. beauty: Essays on standards, trade, and agreements./
Author:	Tothova, Monika.
Description:	183 p.
Notes:	Source: Dissertation Abstracts International, Volume: 65-09, Section: A, page: 3495.
Contained By:	Dissertation Abstracts International65-09A.
Subject:	Economics, Agricultural. -
Online resource:	http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=3146118
ISBN:	049605130X

Truth vs. beauty: Essays on standards, trade, and agreements.
Tothova, Monika.

Truth vs. beauty: Essays on standards, trade, and agreements. - 183 p.

Source: Dissertation Abstracts International, Volume: 65-09, Section: A, page: 3495.

Thesis (Ph.D.)--Michigan State University, 2004.

As the WTO succeeded in reducing tariffs, non-tariff trade barriers (NTBs) seem to be on the rise. Among the NTBs, the premium position is occupied by discrepancies across countries' standards. Countries are guaranteed the right to choose standards they deem appropriate for human, animal, and plant health, assuming they do not serve as barriers to trade. This dissertation examines the role of standards in trade: it investigates interactions among countries with different standards and preferences. The borderline cases of standards considered are "Truth" (defined as the good having a certain attribute) and "Beauty" (defined as the good missing a certain attribute). From an individual country's perspective, standards are perceived as vertically differentiated (that is, the Home consumer feels Truth is superior to Beauty, but the Foreign consumer considers it inferior). However, from the global perspective, standards are not directly comparable in terms of their performance, and according to the WTO, goods that satisfy differing standards may be classified as "like products". The dissertation consists of three related essays and follows a traditional theoretical model-building track with an application to genetically modified foodstuffs.

ISBN: 049605130XSubjects--Topical Terms:

626648
Economics, Agricultural.

Truth vs. beauty: Essays on standards, trade, and agreements.
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245 1 0 $a Truth vs. beauty: Essays on standards, trade, and agreements.
300 $a 183 p.
500 $a Source: Dissertation Abstracts International, Volume: 65-09, Section: A, page: 3495.
500 $a Advisers: David B. Schweikhardt; Steven J. Matusz.
502 $a Thesis (Ph.D.)--Michigan State University, 2004.
520 $a As the WTO succeeded in reducing tariffs, non-tariff trade barriers (NTBs) seem to be on the rise. Among the NTBs, the premium position is occupied by discrepancies across countries' standards. Countries are guaranteed the right to choose standards they deem appropriate for human, animal, and plant health, assuming they do not serve as barriers to trade. This dissertation examines the role of standards in trade: it investigates interactions among countries with different standards and preferences. The borderline cases of standards considered are "Truth" (defined as the good having a certain attribute) and "Beauty" (defined as the good missing a certain attribute). From an individual country's perspective, standards are perceived as vertically differentiated (that is, the Home consumer feels Truth is superior to Beauty, but the Foreign consumer considers it inferior). However, from the global perspective, standards are not directly comparable in terms of their performance, and according to the WTO, goods that satisfy differing standards may be classified as "like products". The dissertation consists of three related essays and follows a traditional theoretical model-building track with an application to genetically modified foodstuffs.
520 $a The first essay, Standards as Strategic Policy Instruments, considers a problem where two pure exchange economies with different preferences each select standards while also trying to accommodate both domestic and foreign consumers (who have different preferences) in order to obtain gains from terms of trade effects. Four different steady states are explored and compared: (1) the social optimum, (2) myopic equilibrium, (3) a Nash equilibrium game, and (4) a Nash bargaining solution.
520 $a The second essay, Differing Standards, Welfare, and Sub-global Agreements, explores endogenous standards-setting in a Krugman-like model of monopolistic competition to investigate formation of potential trade agreements when countries do not have an opportunity to compromise on their standards. Gains from trade arise from a larger number of available varieties. When a global agreement on prevailing standards (or any other NTB) is not feasible, countries resume forming trade agreements with partners that have similar preferences as an alternative way to secure some gains from trade.
520 $a In the third essay, Economies of Scale: Autarky, Harmonization, and Compromise, standards are modeled as tolerance levels. Gains from trade come from larger numbers of varieties available, as well as traditional economies of scale. In an open trade environment we study the impact of standards harmonization and compromise on the social welfare of each country, and conclude that unless the economies of scale are large enough to justify adjustments, countries are better off in autarky.
520 $a The essays are complemented with a case study of genetically modified foodstuffs (in reality the EU position lies close to the "Truth" boundary, while the North American position lies close to the "Beauty" boundary) and explores the policy struggles introduced by their commercial approval in 1992. Countries' positions suggest potential gains from trade are not sufficient to justify harmonization, and countries cluster into clubs based on similar preferences and actual or perceived gains from trade.
590 $a School code: 0128.
650 4 $a Economics, Agricultural. $3 626648
650 4 $a Economics, Theory. $3 1017575
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690 $a 0511
710 2 0 $a Michigan State University. $3 676168
773 0 $t Dissertation Abstracts International $g 65-09A.
790 1 0 $a Schweikhardt, David B., $e advisor
790 1 0 $a Matusz, Steven J., $e advisor
790 $a 0128
791 $a Ph.D.
792 $a 2004
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