Tariff Equivalent of Technical Barriers to Trade with Imperfect Substitution and Trade Costs, November 2005

The price-wedge method yields a tariff-equivalent estimate of technical barriers to trade (TBT). An extension of this method accounts for imperfect substitution between domestic and imported goods and incorporates recent findings on trade costs. We explore the sensitivity of this revamped TBT estimate to its key determinants (substitution elasticity, preference for home good, and trade cost). We use the augmented approach to investigate the ongoing US-Japan apple trade dispute and find that removing the Japanese TBT would yield limited export gains to the United States. We then draw policy implications of our findings.

Emerging Threats to Iowa's Forests, Communities, Wood Industry and Economy, 2013

Iowa’s three million acres of forest land provide environmental benefits to all Iowans in terms of soil erosion control, air quality, and water quality. In 2013, more than 6.5 million trees died. Within those trees there were more than 125 million board feet of wood, compared to 98 million board feet of wood harvested. This level of mortality is the highest level reported from US Forest Service inventories in twenty years. This is disturbing when considering more than 18,000 Iowans are employed in the wood products and manufacturing industry, generating nearly $4 billion in annual sales, more than $900 million in annual payroll and more than $25 million to private woodland owners annually from the sale of timber.

Intra-Industry Trade, Multilateral Trade Integration, and Invasive Species Risk, December 2006

We analyze the linkage between protectionism and invasive species (IS) hazard in the context of two-way trade and multilateral trade integration, two major features of real-world agricultural trade. Multilateral integration includes the joint reduction of tariffs and trade costs among trading partners. Multilateral trade integration is more likely to increase damages from IS than predicted by unilateral trade opening under the classic Heckscher-Ohlin-Samuelson (HOS) framework because domestic production (the base susceptible to damages) is likely to increase with expanding export markets. A country integrating its trade with a partner characterized by relatively higher tariff and trade costs is also more likely to experience increased IS damages via expanded domestic production for the same reason. We illustrate our analytical results with a stylized model of the world wheat market.