An Economic Assessment of the BSE Crisis in Canada: Impact of Border Closure and BSE Recovery Programs

This article assesses the economic consequences of three alternative government responses to the BSE crisis in Canada: 1) expansion in slaughter capacity; 2) partial destruction of the cattle herd; and 3) deficiency payments. Each of these policies is evaluated under four different border situations: 1) autarky; 2) free trade in young beef only; 3) free trade in young beef and cattle; and 4) complete free trade. The results of the policy analysis are quite sensitive to the border assumptions, making it impossible to select a “best” policy without perfect foresight with respect to the timing and the extent of the border opening.

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Journal Article
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Estey Journal of International Law and Trade Policy, Volume 09, Number 1
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 Record created 2017-04-01, last modified 2018-01-22

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