Consumer Welfare Consequences of Armenia’s EAEU Accession

Abstract

ABSTRACT This study provides an empirical assessment of the impacts of Armenia’s accession to the Eurasian Economic Union on consumer welfare. Specifically, it combines primary individual-level expenditure survey data with the recent advances in consumer theory to examine the welfare consequences of rising prices of a broad range of widely consumed dairy products. The choice of the dairy category reflects its importance in the structure of the modern Armenian diet, with its respective nutritional and financial implications. Our findings shed light on the disproportionate effects of the EAEU-induced dairy price surge in Armenia and may prove useful in designing information-based alleviation policies.