On The Optimal Implementation Of Agricultural Policy Reforms
Abstract
Economic analyses of farm policies generally focus on the long run, steady state impacts while the transition dynamics are often overlooked. In this paper we develop a determinist dynamic computable general equilibrium analysis allowing agents to form imperfect versus pefect expectations. Using an illustrative CAP reform scenario, we simulate an abrupt versus a gradual implementation of this reform. Our results show that if economic agents are able to perfectly anticipate the impacts of the reform, then delaying its implementation is never optimal. On the other hand, if agents gradually learn from market developments, then we find some cases where a gradual implementation of this reform is welfare improving. Such gradual implementation allows minimizing adjustment costs.Download Info
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Paper provided by International Agricultural Trade Research Consortium in its series Proceedings Issues, 2010: Climate Change in World Agriculture: Mitigation, Adaptation, Trade and Food Security, June 2010, Stuttgart- Hohenheim, Germany with number 91285.Length:
Date of creation: 2010
Date of revision:
Handle: RePEc:ags:iatr10:91285
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Web page: http://iatrcweb.org/
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Related research
Keywords: Dynamics; Transition; Farm Policies; Welfare; Agricultural and Food Policy; Political Economy;Other versions of this item:
- Féménia, Fabienne & Gohin, Alexandre, 2013. "On the optimal implementation of agricultural policy reforms," Journal of Policy Modeling, Elsevier, vol. 35(1), pages 61-74.
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
- Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
This paper has been announced in the following NEP Reports:
- NEP-AGR-2010-08-06 (Agricultural Economics)
- NEP-ALL-2010-08-06 (All new papers)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hector Calvo Pardo, 2005.
"Are the antiglobalists right? Gains-from-trade without a walrasian auctioneer,"
PSE Working Papers
halshs-00590718, HAL.
- Hector Calvo-Pardo, 2009. "Are the antiglobalists right? Gains-from-trade without a Walrasian auctioneer," Economic Theory, Springer, vol. 38(3), pages 561-592, March.
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