The Welfare Effects of Distribution Regulations in OECD Countries

Posted: 29 Feb 2008

See all articles by Scott C. Bradford

Scott C. Bradford

Brigham Young University - Department of Economics

Abstract

This article presents new data on distribution margins in eight OECD countries and uses an Applied General Equilibrium (AGE) framework to assess the welfare impacts of inefficient distribution. I estimate the extent to which regulations inflate margins. A comparison of margins across countries finds, in contrast to other studies, that Japan`s margins are unusually high. The AGE simulations imply that inefficient distribution imposes substantial welfare costs, especially in Japan, with the costs rivaling those of trade barriers. The results also imply that distribution impediments can significantly reduce imports. (JEL D58, F13, L81)

Suggested Citation

Bradford, Scott C., The Welfare Effects of Distribution Regulations in OECD Countries. Economic Inquiry, Vol. 43, Issue 4, pp. 795-811, 2005, Available at SSRN: https://ssrn.com/abstract=906353

Scott C. Bradford (Contact Author)

Brigham Young University - Department of Economics

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