A Tale of Pork Prices: Evasion and Attenuation of a Japanese Tariff

Crawford School Research Paper

Asia Pacific Economic Paper No. 382

35 Pages Posted: 2 Aug 2011

See all articles by Kazuki Onji

Kazuki Onji

Australian National University - Crawford School of Economics and Government

Multiple version iconThere are 2 versions of this paper

Date Written: 2009

Abstract

This paper empirically examines the effectiveness of a safeguard tariff in the Japanese market for imported pork parts. The goals are, first, to consider a refinement to the traditional market-based method for evasion detection, and, second, to apply the method in a setting where evasion is suspected to be widespread. Utilising a within-pig variation in tariff burdens and the timing of safeguard invocations, I examine a panel of monthly wholesale prices on narrowly-defined pork products from 2001 through 2008. The results are consistent with a hypothesis that a widespread evasion nullified the safeguard tariff on pork, and are robust to a range of alternative explanations including the adjustment of profit margins by traders. Safeguard tariffs appear to be a simple mechanism, but behavioural responses can undo the policy intent.

Keywords: safeguard tariff, price disparity, tax incidence

JEL Classification: H26, H22, F13, L11, Q17

Suggested Citation

Onji, Kazuki, A Tale of Pork Prices: Evasion and Attenuation of a Japanese Tariff (2009). Crawford School Research Paper , Asia Pacific Economic Paper No. 382, Available at SSRN: https://ssrn.com/abstract=1903579 or http://dx.doi.org/10.2139/ssrn.1903579

Kazuki Onji (Contact Author)

Australian National University - Crawford School of Economics and Government ( email )

Building #132
Australian National University
Canberra 0200
Australia

HOME PAGE: http://www.crawford.anu.edu.au/staff/konji.php

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
46
Abstract Views
618
PlumX Metrics