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Causal estimation of the short-term effects of tariff-rate quotas (TRQs) onvegetable producer prices is hampered by the large variety and differentgrowing seasons of vegetables and is therefore rarely performed. We quantifythe effects of Swiss seasonal TRQs on domestic producer prices of a variety ofvegetables based on a difference-in-differences estimation using a noveldataset of weekly producer prices for Switzerland and neighbouring countries.We find that TRQs increase prices of most vegetables by more than 20% above theprices in neighbouring countries during the main harvest time for mostvegetables and even more than 50% for some vegetables. The effects are strongerfor more perishable vegetables and for conventionally produced ones comparedwith organic vegetables. However, we do not find clear-cut effects of TRQs onthe week-to-week price volatility of vegetables although the overall lowerprice volatility in Switzerland compared with neighbouring countries might be aresult of the TRQ system in place.

Assessing the effects of seasonal tariff-rate quotas on vegetable prices in Switzerland