@article{ghazalian_tamini_larue_gervais_2012, title={A gravity model to account for vertical linkages between markets with an application to the cattle/beef sector}, volume={21}, ISSN={["1469-9559"]}, DOI={10.1080/09638199.2010.505297}, abstractNote={A gravity model is developed to explain bilateral trade flows in primary and processed commodities within the same agri-food supply chain. It accounts for vertical production linkages, trade and domestic policies, and supply rigidities at the farm level. Our application focuses on cattle/beef trade flows between 42 countries. The estimated parameters of the model are used to simulate trade flows. We found large differences in the impacts of the full and partial liberalization scenarios. A parametric bootstrap procedure is used to generate confidence intervals around predicted trade liberalization outcomes.}, number={4}, journal={JOURNAL OF INTERNATIONAL TRADE & ECONOMIC DEVELOPMENT}, author={Ghazalian, Pascal L. and Tamini, Lota D. and Larue, Bruno and Gervais, Jean-Philippe}, year={2012}, pages={579–601} } @article{felt_larue_gervais_2012, title={Compositional Standards, Import Permits and Market Structure: The Case of Canadian Cheese Imports}, volume={35}, ISSN={["1467-9701"]}, DOI={10.1111/j.1467-9701.2012.01462.x}, abstractNote={The imposition of cheese compositional standards by the Canadian authorities has created divisions within the Canadian dairy industry and has motivated criticisms from several of Canada’s trade partners. The standards impose minimum limits on the percentage of casein coming from fluid milk. We develop a theoretical model to investigate the implications of Canada’s compositional cheese standards while accounting for Canada’s trade policy. We illustrate why a type of cheese that is not directly impacted by the standards might be the most affected. We show that the standards can decrease the domestic demand for milk or the value of imports. Our empirical investigation identified breaks in the processes determining import unit values shortly before or shortly after the beginning of the implementation of the standards.}, number={8}, journal={WORLD ECONOMY}, author={Felt, Marie-Helene and Larue, Bruno and Gervais, Jean-Philippe}, year={2012}, month={Aug}, pages={1053–1072} } @article{qiu_goodwin_gervais_2011, title={An empirical investigation of the linkages between government payments and farmland leasing arrangements}, volume={36}, number={3}, journal={Journal of Agricultural and Resource Economics}, author={Qiu, F. and Goodwin, B. K. and Gervais, J. P.}, year={2011}, pages={536–551} } @article{ghazalian_larue_gervais_2011, title={Assessing the Implications of Regional Preferential Market Access for Meat Commodities}, volume={27}, ISSN={["1520-6297"]}, DOI={10.1002/agr.20274}, abstractNote={The authors derive a gravity framework that is compatible with the existence of reference prices for agricultural commodities. A commodity-specific gravity equation, estimated with Poisson pseudo-maximum likelihood and threshold Tobit estimators, is used to investigate the effects of regional trade preferences for meat commodities. The predictions indicate that European Union (EU) tariff-free access and North American Free Trade Agreement (NAFTA) nontariff provisions are the main types of preferences that substantially promoted intraregional trade. In addition, the trade creation effects of the Mercado Comun del Sur (MERCOSUR) and Andean Community of Nations (ANDEAN) are generally the result of nontariff preferences. Moderate trade diversion effects occurred in the case of the EU, NAFTA, and MERCOSUR. [Econ Lit classification: F14, F15, Q17]. © 2011 Wiley Periodicals, Inc.}, number={3}, journal={AGRIBUSINESS}, author={Ghazalian, Pascal L. and Larue, Bruno and Gervais, Jean-Philippe}, year={2011}, pages={292–310} } @article{gervais_2011, title={Disentangling nonlinearities in the long- and short-run price relationships: an application to the US hog/pork supply chain}, volume={43}, ISSN={["1466-4283"]}, DOI={10.1080/00036840802600558}, abstractNote={Increased concentration at the retail, food processing and farm input manufacturing levels has brought increased attention to patterns in retail-to-farm price spreads. Most studies documenting asymmetric price transmission focus on nonlinear error correction processes, as opposed to the current study which analyses potential nonlinearities in the long-run relationship between the farm and retail prices. The null hypothesis of nonlinearity in the long-run relationship between farm and retail prices in the US hog/pork supply chain is rejected in favour of a Smooth Transition Cointegration (STC) framework. The STC framework predicts downward price stickiness in retail prices. The predicted residuals of the nonlinear model are used to investigate whether it is possible to disentangle nonlinearity in the long-run price relationship from nonlinearity in the adjustment towards the long-run equilibrium. The results underline the importance of testing for linearity in the long-run price relationship before modelling nonlinearity in short-run dynamics.}, number={12}, journal={APPLIED ECONOMICS}, author={Gervais, Jean-Philippe}, year={2011}, pages={1497–1510} } @article{felt_gervais_larue_2011, title={Market Power and Import Bans: The Case of Japanese Pork Imports}, volume={27}, ISSN={["0742-4477"]}, DOI={10.1002/agr.20249}, abstractNote={Animal disease outbreaks trigger import restrictions that penalize exporting countries where the outbreak originates. However, significant increases in sales for the remaining exporters are likely to be observed only once the importer is confident that the outbreak is localized and contained. In March of 1997, Japan imposed an import ban on Taiwanese pork. At the time, Taiwan was supplying 41% of Japan's pork imports. The authors rely on the framework developed by Goldberg and Knetter (1999) and implement a generalized method of moments procedure to estimate the inverse residual demand elasticities of the current three largest exporting countries: United States, Canada, and Denmark. Structural change was investigated by adapting Qu and Perron's (2007) methodology that endogenizes the break dates. The authors found that foreign exporters were delayed by 2 years in making adjustments after Taiwan's exit. The ban on Taiwan's exports made the U.S. residual demand more inelastic and reinforced the case for U.S. market power. Denmark's reduction of market power may be due to their export product mix. [EconLit citations: L11; Q13]. © 2010 Wiley Periodicals, Inc.}, number={1}, journal={AGRIBUSINESS}, author={Felt, Marie-Helene and Gervais, Jean-Philippe and Larue, Bruno}, year={2011}, pages={47–61} } @article{larue_gervais_rancourt_2010, title={Exchange rate pass-through, menu costs and threshold cointegration}, volume={38}, ISSN={["0377-7332"]}, DOI={10.1007/s00181-009-0261-2}, number={1}, journal={EMPIRICAL ECONOMICS}, author={Larue, Bruno and Gervais, Jean-Philippe and Rancourt, Yannick}, year={2010}, month={Feb}, pages={171–192} } @article{tamini_gervais_larue_2010, title={THE VALUE OF THE INITIAL PAYMENT OF THE CANADIAN WHEAT BOARD AS A SIGNALING DEVICE}, volume={92}, ISSN={["0002-9092"]}, DOI={10.1093/ajae/aap012}, abstractNote={This paper analyzes the role of the initial payment used by the Canadian Wheat Board (CWB) in the determination of export prices and sales under the assumption that the CWB has better information about realized yields in Canada than its US competitor. In the separating equilibrium of the game, the initial payment of the CWB is larger than the initial payment under complete information. There exists an incentive under incomplete information to send a signal that realized yields are greater than expected to induce a reduction in the sales of foreign competitors. We illustrate the strategic value of the initial payment for Canadian wheat producers using a numerical simulation.}, number={1}, journal={AMERICAN JOURNAL OF AGRICULTURAL ECONOMICS}, author={Tamini, Lota D. and Gervais, Jean-Philippe and Larue, Bruno}, year={2010}, month={Jan}, pages={42–55} } @article{tamini_gervais_larue_2010, title={Trade liberalisation effects on agricultural goods at different processing stages}, volume={37}, ISSN={["1464-3618"]}, DOI={10.1093/erae/jbq035}, abstractNote={A two-stage gravity-based model is used to explain cattle and beef bilateral trade flows between 42 countries. The model parameters are estimated using a double-hurdle model with a multivariate sample selection procedure. The parameter estimates are used to simulate probabilities of new trade flows and the increase in existing trade flows following reductions in import tariffs, export subsidies and domestic support. The results show that adjustments in beef exports occur at both the extensive and intensive margins. Full liberalisation would entail adjustments in the extensive margins for developing economies that are about six-fold the adjustments under partial liberalisation. Oxford University Press and Foundation for the European Review of Agricultural Economics 2010; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.}, number={4}, journal={EUROPEAN REVIEW OF AGRICULTURAL ECONOMICS}, author={Tamini, Lota D. and Gervais, Jean-Philippe and Larue, Bruno}, year={2010}, month={Dec}, pages={453–477} } @article{gervais_larue_2009, title={A joint test of market power, menu costs, and currency invoicing}, volume={40}, ISSN={["1574-0862"]}, DOI={10.1111/j.1574-0862.2008.00342.x}, abstractNote={This article investigates exchange rate pass-through (ERPT) and currency invoicing decisions of Canadian pork exporters in the presence of menu costs. It is shown that when export prices are negotiated in the exporter's currency, menu costs cause threshold effects in the sense that there are bounds within (outside of) which price adjustments are not (are) observed. Conversely, the pass-through is not interrupted by menu costs when export prices are denominated in the importer's currency. The empirical model focuses on pork meat exports from two Canadian provinces to the U.S. and Japan. Hansen's (2000) threshold estimation procedure is used to jointly test for currency invoicing and incomplete pass-through in the presence of menu costs. Inference is conducted using the bootstrap with pre-pivoting methods to deal with nuisance parameters. The existence of menu cost is supported by the data in three of the four cases. It also appears that Quebec pork exporters have some market power and invoice in Japanese yen their exports to Japan. Manitoba exporters also seem to follow the same invoicing strategy, but their ability to increase their profit margin in response to large enough own-currency devaluations is questionable. Our currency invoicing results for sales to the U.S. are consistent with subsets of Canadian firms using either the Canadian or U.S. currency. Copyright (c) 2009 International Association of Agricultural Economists.}, number={1}, journal={AGRICULTURAL ECONOMICS}, author={Gervais, Jean-Philippe and Larue, Bruno}, year={2009}, month={Jan}, pages={29–41} } @article{rude_gervais_2009, title={Biases in Calculating Dumping Margins: The Case of Cyclical Products}, volume={31}, ISSN={["1058-7195"]}, DOI={10.1111/j.1467-9353.2008.01429.x}, abstractNote={A dumping investigation involves comparing export prices with a “normal value” loosely defined as the price in the exporter's domestic market observed in the course of normal trade. However, domestic sales with prices below production costs are excluded from the computation of a normal value. The paper illustrates how price cycles affect the magnitude of estimated dumping margins. The empirical analysis focuses on Canadian hog exports to the United States and U.S. potato exports to Canada. The estimated period and amplitude of each price cycles result in average dumping margins for Canadian hogs and U.S. potato exports of 11.5% and 5.9%, respectively. Biases in dumping margins depend on the nature of the cycle, the period of investigation, and the average production cost estimate. Copyright 2009, Oxford University Press.}, number={1}, journal={REVIEW OF AGRICULTURAL ECONOMICS}, author={Rude, James and Gervais, Jean-Philippe}, year={2009}, pages={122–142} } @article{ghazalian_larue_gervais_2009, title={Exporting to new destinations and the effects of tariffs: the case of meat commodities}, volume={40}, ISSN={["1574-0862"]}, DOI={10.1111/j.1574-0862.2009.00409.x}, abstractNote={This study uses a random parameter probit estimation to examine the effects of tariff liberalization on the probability of establishing new trading relationships in meat commodities. Our simulation results indicate that the effects of tariff reductions decrease with distance, but increase with the level of development. The probabilities of trade increase at an increasing rate with the size of tariff reductions thus justifying calls for ambitious liberalization schemes. Canada and Mexico are the NAFTA countries that are most likely to export in response to EU tariff reductions on bovine and poultry meats, while Brazil and Argentina emerge as the MERCOSUR countries most likely to penetrate the EU bovine meat market after EU tariff reductions. Uruguay's probability to export poultry meat is most responsive to EU tariff reductions. Copyright (c) 2009 International Association of Agricultural Economists.}, number={6}, journal={AGRICULTURAL ECONOMICS}, author={Ghazalian, Pascal L. and Larue, Bruno and Gervais, Jean-Philippe}, year={2009}, month={Nov}, pages={701–714} } @article{gervais_bonroy_couture_2008, title={A Province-Level Analysis of Economies of Scale in Canadian Food Processing}, volume={24}, ISSN={["1520-6297"]}, DOI={10.1002/agr.20178}, abstractNote={Cost functions of three Canadian food-processing sectors (meat, bakery, and dairy) are estimated using provincial data. A translog functional form is used, and the concavity property of the cost function is imposed locally. The Morishima substitution elasticities and scale elasticities are computed for different provinces. Inference is carried out using asymptotic theory as well as bootstrap methods. The evidence suggests that there are significant substitution possibilities between the agricultural input and other production factors in the meat and bakery sectors. Scale elasticities suggest that increasing returns to scale are present in the bakery and meat industries. To account for supply management in the dairy sector, separability between raw milk and other inputs was introduced. There exists evidence of increasing returns to scale at the industry level in the small producing provinces, but decreasing returns to scale in the two largest dairy provinces (Ontario and Quebec). lJEL Classification: D240, C300r. © 2008 Wiley Periodicals, Inc.}, number={4}, journal={AGRIBUSINESS}, author={Gervais, Jean-Philippe and Bonroy, Olivier and Couture, Steve}, year={2008}, pages={538–556} }