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Agricultural policy impact analysis with multi-market models: a primer

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  • Croppenstedt, André
  • Bellú, Lorenzo Giovanni
  • Bresciani, Fabrizio
  • DiGiuseppe, Stefania

Abstract

Many governments intervene directly in agricultural product, in particular food, markets. A quantitative assessment of the impact of the policy changes on the desired objectives is important as it helps inform and shape the policy debate on the reform alternatives and increases transparency of government policy. This paper reviews the literature on multimarket models which offer more accurate ex ante impact analysis than single-market models by including potentially important indirect effects. While fairly complex and requiring large amounts of data multi-market models are however much simpler than computable general equilibrium models. They are typically applied at the sector level and have proven quite popular in particular in agricultural policy reform impact analysis. While more recent work has emphasized the poverty reduction and income distribution objective the models can generate a range of information relevant to policy makers.

Suggested Citation

  • Croppenstedt, André & Bellú, Lorenzo Giovanni & Bresciani, Fabrizio & DiGiuseppe, Stefania, 2007. "Agricultural policy impact analysis with multi-market models: a primer," ESA Working Papers 289034, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    • Handle: RePEc:ags:faoaes:289034
    DOI: 10.22004/ag.econ.289034
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    Cited by:

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    2. Ulimwengu, John M. & Ramadan, Racha, 2009. "How does food price increase affect Ugandan households?: An augmented multimarket approach," IFPRI discussion papers 884, International Food Policy Research Institute (IFPRI).
    3. Haggblade, Steven & Me-Nsope, Nathalie M. & Staatz, John M., 2017. "Food security implications of staple food substitution in Sahelian West Africa," Food Policy, Elsevier, vol. 71(C), pages 27-38.
    4. Sabirova, A. I. & Nizamutdinov, M. M. & Safiullin, A. R. & Kharisova, F. I., 2019. "The impact of competition on regional food security (the case of the milk and dairy market in the Republic of Tatarstan)," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 5(3), pages 137-143.
    5. Briones, Roehlano M. & David, Cristina C. & Inocencio, Arlene B. & Intal, Ponciano Jr. S. & Geron, Maria Piedad S. & Ballesteros, Marife M., 2012. "Monitoring and Evaluation of Agricultural Policy Indicators," Discussion Papers DP 2012-26, Philippine Institute for Development Studies.
    6. Nin-Pratt, Alejandro & Johnson, Michael & Magalhaes, Eduardo & Diao, Xinshen & You, Liang & Chamberlin, Jordan, 2009. "Priorities for realizing the potential to increase agricultural productivity and growth in Western and Central Africa:," IFPRI discussion papers 876, International Food Policy Research Institute (IFPRI).

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    More about this item

    Keywords

    Agricultural and Food Policy;

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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