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Papers by abdessalem abbassi

Journal of the Knowledge Economy

The marketing of the Tunisian sugar industry is evolving under government budget pressures. This ... more The marketing of the Tunisian sugar industry is evolving under government budget pressures. This article sets out to evaluate the impacts of subsidy reforms in the Tunisian sugar industry using a linear-quadratic storage model. Pricing mechanisms and decisions to import and sell sugar are modeled using a partial equilibrium model. The resolution of the model allows us to determine the decision rules of imports of white sugar and those of brown sugar as well as sales according to their own lagged values, lagged variables of storage, and lagged prices. The null hypothesis of the absence of the role of storage in the decision rules is rejected. The structural parameters of the system of equations are estimated using the generalized method of moments. These parameters are, then, used to simulate the impacts of reforming the sugar pricing mechanisms. An econometric simulation exercise was carried out to study the different scenarios of the upward pricing of sugar, due to a gradual elimination of the subsidy. The simulation reveals that an increase in the selling price leads to a slight variation in the level of sugar imports and production. This is explained by the existence of the quadratic adjustment cost of imports and the inelastic demand for sugar in Tunisia. A rationalization of sugar consumption by Tunisian citizens and an encouragement of companies to refine activity are then imposed at this level. Indeed, a drop in consumption would reduce the difficulties in the sugar market in Tunisia. The Tunisian Office of Trade would import less and therefore reduce its costs and losses.

The Journal of Energy Markets, 2021

In this paper, we analyze the effect of an environmental policy targeting the enhancement of ecos... more In this paper, we analyze the effect of an environmental policy targeting the enhancement of ecosystem integrity as well as air quality in the wholesale electricity market. We develop a dynamic Cournot game featuring two risk-averse electricity producers – one hydro and one thermal – under demand uncertainty. We demonstrate that while improving air quality necessarily raises the market price, enhancing ecosystem integrity can, under the water-abundance hypothesis, reduce it. Moreover, in order to establish a statement about the environmental policy’s efficiency, we examine interactions between these environmental measures and their potential side effects. We show that prioritizing a natural flow regime minimizes the taxation efficiency of lowering air pollution and emphasizes the price rise due to taxation. Nevertheless, the effect of the taxation policy on the efficiency of the ecosystem integrity policy depends on the hydro producer’s ability to substitute thermal units. In order to establish a precise environmental statement, regulation authorities need to compare, using appropriate criteria, the importance of an avoided unit of surrounding ecosystem alteration with the importance of an avoided unit of air-polluting production in the functioning of the whole ecosystem.

World Academy of Science, Engineering and Technology, International Journal of Environmental and Ecological Engineering, 2016

This paper uses the border effect estimate from a gravity model to analyze the level of market tr... more This paper uses the border effect estimate from a gravity model to analyze the level of market trade integration among Algeria, Egypt, Mauritania, Morocco, and Tunisia from 2005-2012. We analyze total trade as well as trade in agricultural and industrial products. The border effect estimates show that crossing a national border within these North African countries induces a trade-reduction effect. The highest effect is for Algeria, with total trade being reduced by a factor of 5 in 2011-2012, while the lowest effect is for Tunisia, with the total trade being reduced by a factor of 2 in 2011-2012. Our results also show that the border effect is stable over time. The mean value masks differences that are quite substantial in market integration when considering agricultural products or industrial products, the borders effects being lower for the latter. For industrial products in 2011-2012, the highest border effect is in Tunisia, with a factor of 3.3, and the lowest border effect is f...

International Journal of Trade and Global Markets, 2021

Journal of Agribusiness in Developing and Emerging Economies, 2020

PurposeThe purpose of this paper is to develop a partial equilibrium model for the Tunisian dairy... more PurposeThe purpose of this paper is to develop a partial equilibrium model for the Tunisian dairy sector according to “quantity formulation” and “price formulation” and to show their equivalence under the assumption of perfect competition.Design/methodology/approachThis model incorporates domestic policies, that is, producers' price support and subsidies to milk collection centres and trade policies, that is, TRQ and ad valorem tariffs. The authors illustrate theoretically and numerically how to incorporate the minimum price policy at the farm level for the Tunisian dairy sector according to the price formulation approach.FindingsTwo scenarios for the removal of a minimum price policy are analysed and show that producers' surplus loss varies between 78.6 and 127.8 million dinars. The overall welfare implications of removing a minimum price policy are negative and range between 13.3 and 18.2 million dinars.Research limitations/implicationsThis study could not include all of t...

SSRN Electronic Journal, 2016

The objective of this paper is to analyze trade potential versus actual realized trade among Nort... more The objective of this paper is to analyze trade potential versus actual realized trade among North African trading partners. Following the literature on production economics, we built a stochastic frontier gravity model. The underlying assumption is that all deviation from trade potential is not due to white noise but could also be due to inefficiencies. Time-variant country-specific trade efficiency estimates are obtained and analyzed. Our results indicate that Mauritania as a country of destination and of origin is where the trading relationship is the least efficient. Conversely, Tunisia, followed by Morocco, faces the fewest "behind" and "beyond" the border effects. Our analysis of market integration and trade efficiency at the disaggregated level indicates that trade efficiency scores exhibit high variability between the categories of products. Moreover, North African market integration is worst when considering the goods from the category "Textiles; Footwear & Headgear". Our estimates indicate that trade efficiency for agricultural products is relatively low indicating the existence of significant "behind" and "beyond" border inefficiencies. Our estimates also point at the presence of poor and counterproductive regulatory environment and underline the importance of improving domestic policies to encourage entrepreneurial development and business facilities. Our findings confirm the need for the North African countries to improve their trade logistics at the national level to enhance trade efficiency and to implement trade facilitation reform programs.

International Journal of Energy Economics and Policy, Jun 13, 2014

In this article, we are interested in the analysis of energy intensity by the Fisher Ideal Index ... more In this article, we are interested in the analysis of energy intensity by the Fisher Ideal Index method, a method belonging to the approach of the Index Decomposition Analysis (IDA), in order to highlight the effects which contribute to its reduction. The use of this method allowed us to decompose the variation of energy intensity in Tunisia for the period 1990-2008 into two effects: one effect due to the structural change of the economy and another arising from energy efficiency. We show that the effect of enhancing energy efficiency is the main contributor to the reduction of energy intensity in Tunisia. Indeed, the setting into action of the policy of energy control has improved energy efficiency by allowing reaching a lower level of energy intensity. On the other hand, the effect of structural change through the orientation of the Tunisian economy toward the tertiary sector has also helped to reduce the energy intensity.

Economic Modelling, 2015

The paper analyzes the impact of import quotas on the welfare of different regions belonging to a... more The paper analyzes the impact of import quotas on the welfare of different regions belonging to a single country. The regions compete with one another using Cournot conjectures and international trade is hindered by import quotas. Our results can help the country to determine the optimal import quotas and the best way to allocate import permits between regions. We find three mains results. First, we show how the world price, the difference in production costs between regions and the relative market size determine the allocation of import quotas, the interregional trade and the rent of import permits holders. Second, we show that in the presence of interregional trade in both directions, the region with the largest market size will obtain the largest share of imports while in the absence of trade, the allocation of import permits between regions also depends on the production cost asymmetry. Third, when only the most efficient region exports to the least efficient one, production cost asymmetry, transaction costs and world price determine whether the smaller or larger region obtains the larger share of importations allowed under import quotas.

SSRN Electronic Journal, 2014

Les cahiers de recherche du CREATE ne font pas l'objet d'un processus d'évaluation par les pairs/... more Les cahiers de recherche du CREATE ne font pas l'objet d'un processus d'évaluation par les pairs/CREATE working papers do not undergo a peer review process.

SSRN Electronic Journal, 2013

In this article we propose a bilateral dumping model in which the minimum access level is endogen... more In this article we propose a bilateral dumping model in which the minimum access level is endogenous. Regions compete with one another using Cournot conjectures and engage in interregional dumping as in Brander and Krugman's (1983) reciprocal dumping model. International trade is hindered by restrictive Tariff rate Quota (TRQs). The model features two regions and one product. We derive the conditions under which it is optimal to observe interregional trade and those under which trade does not exist. The results show that the world price and the difference in production costs between regions play an important role in determining whether bilateral trade exists. In the presence of bilateral trade, the region with the largest market size will obtain the largest share of import volumes permitted under the minimum access system while in the absence of interregional trade, the distribution of import permits between regions will also depends on the product cost asymmetry. When only the most efficient region exports to the least efficient region, production costs asymmetry, transaction costs and world price level determine whether the smaller or larger region obtains the larger share of product import allowed under minimum access commitment. In all cases, we show that in a country like Canada, creation of "artificial barriers" to interprovincial trade of products under supply management system lowers the welfare of at least one of the regions, along with the global welfare.

The paper introduces imperfect competition in a spatial equilibrium model of provincial dairy mar... more The paper introduces imperfect competition in a spatial equilibrium model of provincial dairy markets to analyze the welfare impacts of trade liberalization. Our model accounts for output restrictions at the farm level and the potential presence of market power at the processing level. Our model builds on the reciprocal dumping model of Brander and Krugman (1983) because processing firms from different provinces compete with one another in several provinces. Simulations reveal that welfare in the Canadian dairy sector could increase by as much as 1billionperyearifaggressivetariffcutsweremadewhilemoderateliberalizationplanswouldyieldannualgainsof1 billion per year if aggressive tariff cuts were made while moderate liberalization plans would yield annual gains of 1billionperyearifaggressivetariffcutsweremadewhilemoderateliberalizationplanswouldyieldannualgainsof234.5 million. Even large producing provinces like Quebec and Ontario gain from trade liberalization. In comparison, a perfect competition model yields more modest welfare gains in the range of 15.6millionand15.6 million and 15.6millionand34.5 million. Finally, we show that the switch in the sign of the transport cost-welfare relation identified by Brander and Krugman (1983) occurs at transport costs that are too high to be policy-relevant.

Journal of Agricultural & Food Industrial Organization, 2010

Marketing institutions in supply managed industries are evolving due to broad globalization press... more Marketing institutions in supply managed industries are evolving due to broad globalization pressures. The output and sales decisions of chicken processing firms under two different pricing mechanisms are modeled using a linear-quadratic inventory model. Decision rules lead to structural equations that relate output and sales to their own lagged values, lagged inventories and lagged prices and cost indicators. A Generalized Method of Moments (GMM) estimator is applied to the system of equations. The null hypotheses no adjustment costs in processing and no role for inventories in marketing are rejected. We simulate the impacts of reforming the chicken pricing mechanism, moving from producers vs. processors bargaining to a formula-based price (referred to as "cost-plus"). Output in the industry is higher under the bargaining pricing system mostly because processors pay a lower price than under the "cost-plus" mechanism. Simulations reveal that producers' expected profits are lower on average under the bargaining system than under "cost-plus." Moreover, the "cost-plus" system reduces the variability of profits.

Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, 2008

Supply management in Canada is facing broad trade liberalization pressures. This paper uses a spa... more Supply management in Canada is facing broad trade liberalization pressures. This paper uses a spatial equilibrium trade model to simulate the impacts of various trade liberalization scenarios in the Canadian dairy industry. The results critically hinge on the relationship between increased market access and the market sharing quota (MSQ) at the farm level. Two different MSQ decision rules are simulated: (i) global output at the farm level remains unchanged following liberalization; and (ii) the MSQ is reduced to support the unit production quota rent at its preliberalization level. The results show that if the MSQ is held constant following a potential compromise in the Doha Round, retail prices of fluid milk and cheese would decrease by about 5%. These price movements can be negated by a 1.4% cut in the global MSQ at the farm level. Net welfare gains in the Canadian dairy sector following market access reforms range between 48.2and48.2 and 48.2and64.2 million when evaluated at the 2003-04 world prices. Le courant de libéralisation deséchanges crée une certaine pression sur les programmes de gestion de l'offre au Canada. Ce papier présente un modèle de commerce enéquilibre spatial afin de simuler les effets de différents scénarios de libéralisation deséchanges sur l'industrie laitière canadienne. Les résultats dépendent fortement de la relation entre amélioration de l'accès au marché et quota de mise en marché (QMM). Deux différentes règles de décision du QMM sont simulées : i) la production globale est inchangée après la libéralisation ; et ii) le QMM est réduit afin d'assurer une rente de quota par unité de production identiqueà son niveau de pré-libéralisation. Les résultats associésà un compromis potentiel dans le cadre du Cycle de Doha indiquent que les prix au détail du lait de consommation et du fromage diminueraient d'environ 5% si le QMM demeure constant. En revanche, les variations de prix seraient nulles si le QMM est réduit de 1.4%. Suivant les scénarios de libéralisation deséchanges considérés, le gain net pour l'industrie laitière canadienne serait compris entre 48.2 et 64.2 millions de dollars, lorsqu'évalué aux prix mondiaux de 2003/2004.

Agribusiness, 2012

This paper investigates the influence of inventories in explaining the magnitude of price transmi... more This paper investigates the influence of inventories in explaining the magnitude of price transmission. The empirical strategy consists of two distinct steps. First, the flexible nonlinear framework of Hamilton is used to investigate the influence of inventories on price transmission. The procedure detects significant non-linearities and suggests that the price transmission elasticity is increasing in the level of the farm price and decreasing in the ratio of inventories to sales. This evidence leads to specific functional forms for the price transmission and target inventory equations which are estimated in a second step. The estimation procedure accounts for potential simultaneity between sales at the wholesale level and the wholesale price. Our results suggest that price transmission is lower (higher) when inventories are below (above) a target which is function of domestic sales.

In this paper, we analyse the effect of an environmental policy that targets to enhance ecosystem... more In this paper, we analyse the effect of an environmental policy that targets to enhance ecosystems integrity as well as air quality in the wholesale electricity market. We developed a dynamic Cournot game between a hydro and a thermal risk adverse electricity producers under demand uncertainty. We demonstrate that while improving air quality necessarily raises the market price, enhancing ecosystems integrity can, under water abundance hypothesis, reduce it. Moreover, in order to establish a statement about the environmental policy efficiency, we examine interactions between both environmental measures and their potential side effects. We show that prioritizing natural flow regime minimises necessarily the taxation efficiency on lowering air pollution and emphasizes the price rise due to the taxation. Nevertheless, the effect of the taxation policy on the efficiency of the ecosystems integrity policy depends on the hydro producer's ability to substitute thermal units. In order to...

DISCLAIMER: The EMNES documents are produced with the financial assistance of the European Union ... more DISCLAIMER: The EMNES documents are produced with the financial assistance of the European Union within the context of the EU project "Support to economic research, studies and dialogue of the Euro-Mediterranean Partnership" under contract number ENPI/2014/354-488. The contents of EMNES documents are the sole responsibility of the authors and can under no circumstances be regarded as reflecting the position of the European Union. INSTITUTIONS AND LABOUR MARKETS IN THE SOUTHERN MEDITERRANEAN COUNTRIES EMNES Studies No 2 / November, 2017 EMNES Studies disseminate economic policy research to explore and assess the socio-economic drivers of the innovative, sustainable and inclusive development and growth models in the Mediterranean region. Available for free downloading from the EMNES website www.emnes.org © EMNES 2017 Page 2 of 167 ABOUT THIS STUDY This study on trade flows and the impact of EU-Med trade and investment agreements on Euro-Med countries is produced by the team of Research Area 6 of the Euro-Mediterranean Network of Economic Studies (EMNES). The EMNES project is funded by a grant from the European Commission (ENPV/2O14/354-488). The aim of the project is to provide a renewed vision for socioeconomic development in the Mediterranean region, mainly focusing on employment creation, social inclusion and sustainable development. Research Area 6 focuses on economic liberalization, trade integration and investment between the European Union and the Southern Mediterranean countries. To achieve this objective, the first phase of research has consisted of providing an overview of i) the current scope and existing patterns of trade between the two regions, ii) the state of Euro-Mediterranean trade relations and agreements, how these have evolved over time and iii) their impact on the Southern Mediterranean countries. Such questions are exemplified by the case countries of Egypt, Jordan, Morocco and Tunisia.