Abstract
This comment addresses Cardwell, Lawley, and Xiang’s (2015) article that provides an estimate of the consumer burden caused by supply management. The main concern is regarding the strong assumption that observed cross-border price differences between Canada and the United States are solely caused by supply management. To demonstrate the flaw in this assumption, we compare cross-border price differences for non–supply-managed products, which reveals that other factors are also at play. By not taking this into account, the article overstates the consumer burden caused by supply management. Other issues regarding exchange rate sensitivity and the rhetoric of the article are also discussed.
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