Analyzing the Impacts of the Proposed North American Free Trade Agreement on European-North American Dairy Trade Using a Joint-Input, Multi-Product Approach
AbstractMathematical programming models, as typically formulated for international trade applications, may contain certain implied restrictions limiting price responsiveness, intermediate product flows, and arbitrage possibilities. These restrictions are especially important in the case of dairy, and may lead to results which are technically infeasible, or if feasible, not consistent with market equilibrating behavior. The difficulties encountered when modeling dairy trade are described, and an alternative formulation of a spatial model is presented. This formulation allows joint-inputs, multi-products, intermediate markets, and pure transshipment and product substitution forms of arbitrage.
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Bibliographic InfoPaper provided by Cornell University, Department of Applied Economics and Management in its series Staff Papers with number 121341.
Date of creation: Sep 1993
Date of revision:
International Relations/Trade; Livestock Production/Industries;
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- Honma, Masayoshi & Hayami, Yujiro, 1986. "Structure of agricultural protection in industrial countries," Journal of International Economics, Elsevier, vol. 20(1-2), pages 115-129, February.
- Kym Anderson & Rod Tyers, 1988. "Agricultural Protection Growth in Advanced and Newly Industrialized Countries," School of Economics Working Papers 1988-08, University of Adelaide, School of Economics.
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