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Using Producer And Consumer Subsidy Equivalents In The Swopsim Modeling Framework

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  • Haley, Stephen L.

Abstract

Producer subsidy equivalents (PSE's) and consumer subsidy equivalents (CSE' s) are used as aggregate policy measures in the U.S. Department of Agriculture's (USDA) modeling of the effects of trade liberalization on world agriculture. This report examines some issues concerning the use of PSE' s and (SE '5 in the modeling of agricultural trade liberalization in the context of the Static World Policy Simulation (SW)PSIM) models of USDA. It discusses some of the assumptions required when using PSE's and (SE's in SWOPSIM, the possible shortcomings of those assumptions, and alternative ways of dealing with the Shortcomings. Three related topics are: (1) using PSE's and CSE's as approximations to specific policy interventions such as target prices, loan rates, and export restitutions, (2) adjustments to PSE's when modeling acreage set-asides and/or supply controls, and (3) initialization of the model in the context of distortions.

Suggested Citation

  • Haley, Stephen L., 1989. "Using Producer And Consumer Subsidy Equivalents In The Swopsim Modeling Framework," Staff Reports 278177, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:278177
    DOI: 10.22004/ag.econ.278177
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    File URL: https://ageconsearch.umn.edu/record/278177/files/ers-report-391.pdf
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    References listed on IDEAS

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    1. Dunham, Denis, 1987. "Food Cost Review, 1986," Agricultural Economic Reports 257274, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Roningen, Vernon O. & Dixit, Praveen M., 1989. "Economic Implications Of Agricultural Policy Reforms In Industrial Market Economies," Staff Reports 278843, United States Department of Agriculture, Economic Research Service.
    2. Ferris, John N., 1991. "Analysis Of The Past And Future Impacts Of The Wheat, Feed Grains And Conservation Reserve Provisions Of The Food Security Act Of 1985 On U.S. Agriculture," 1991 Annual Meeting, August 4-7, Manhattan, Kansas 271269, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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    2. Robinson, Sherman & Kilkenny, Maureen & Adelman, Irma, 1988. "The Effect of Trade Liberalization in Agriculture on the U.S. Economy to 1991," CUDARE Working Papers 198475, University of California, Berkeley, Department of Agricultural and Resource Economics.

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