IDEAS home Printed from https://ideas.repec.org/p/cop/wpaper/op-65.html
   My bibliography  Save this paper

Modelling the Effects on Australia of Interventions in World Agricultural Trade

Author

Listed:
  • Mark Horridge
  • David Pearce

Abstract

In this paper we desribe a general equilibrium model of the world economy, designed to simulate the effect of a liberalization of world food trade. Our model owes much to Tyers (1985) partial equilibrium model which covered trade between 30 countries in 7 agricultural commodities. It also displays several important differences. First, ours is a general equilibrium model. We argue that the general equilibrium approach makes key assumptions explicit, and can be used to restrict uncertain parameter values. Second, we have adopted a comparative static framework, and have expressed our equations in percentage change form. Third, we have updated and revised most of the data used by Tyers. Last, our methodology allows us to include the ORANI model of the Australian economy as an integral part of the world model. This allows a detailed picture of the effects of world food trade liberalization on Australia. At the same time the ORANI results are completely consistent with those yielded by the world model. Please note: The PDF download of this fairly old paper is an optical scan.

Suggested Citation

  • Mark Horridge & David Pearce, 1988. "Modelling the Effects on Australia of Interventions in World Agricultural Trade," Centre of Policy Studies/IMPACT Centre Working Papers op-65, Victoria University, Centre of Policy Studies/IMPACT Centre.
    • Handle: RePEc:cop:wpaper:op-65
    as

    Download full text from publisher

    File URL: https://www.copsmodels.com/ftp/workpapr/op-65.pdf
    File Function: Initial version, 1988-10
    Download Restriction: no
    File URL: https://www.copsmodels.com/elecpapr/op-65.htm
    File Function: Local abstract: may link to additional material.
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Horridge, Mark & Pearce, David & Walker, Agnes, 1990. "World Agricultural Trade Reform: Implications for Australia," The Economic Record, The Economic Society of Australia, vol. 66(194), pages 235-248, September.
    2. Trela, Irene & Whalley, John & Wigle, Randall, 1987. " International Trade in Grains: Domestic Policies and Trade Impacts," Scandinavian Journal of Economics, Wiley Blackwell, vol. 89(3), pages 271-283.
    3. Tyers, Rodney, 1985. "International Impacts of protection: model structure and results for FC agricultural policy," Journal of Policy Modeling, Elsevier, vol. 7(2), pages 219-251.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hertel, Thomas W., 1991. "Applied General Equilibrium Analysis of Agricultural Policies," Staff Papers 200396, Purdue University, Department of Agricultural Economics.
    2. Tyers, Rodney, 1990. "Searching Under The Light: The Neglect Of General Equilibrium, Dynamics And Risk In The Analysis Of Food Trade Reforms," Staff Papers 13845, University of Minnesota, Department of Applied Economics.
    3. Alexandre Gohin & Herve Guyomard & Chantal Le Mouël, 1998. "Agricultural policies analysis : contribution of computable general equilibrium modeling [L'analyse des politiques agricoles : l'apport de l'équilibre général calculable]," Post-Print hal-02837721, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael Davenport, 1989. "Imperial Preference Revisited: The European Community and Tropical Products," Development Policy Review, Overseas Development Institute, vol. 7(4), pages 323-341, December.
    2. Tao Xiang & Jikun Huang & d’Artis Kancs & Scott Rozelle & Jo Swinnen, 2012. "Food Standards and Welfare: General Equilibrium Effects," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(2), pages 223-244, June.
    3. Locke, Christopher G. & Ahmadi-Esfahani, Fredoun Z., 2001. "Debt overhangs and international agricultural trade," Journal of Policy Modeling, Elsevier, vol. 23(2), pages 189-216, February.
    4. Kym Anderson & Rod Tyers, 1986. "Agricultural Policies of Industrial Countries and their Effects on Traditional Food Exporters," The Economic Record, The Economic Society of Australia, vol. 62(4), pages 385-399, December.
    5. Tyers, Rod, 1992. "Searching under the Light: The Neglect of Dynamics and Risk in the Analysis of Food Trade Reforms," 1992 Occasional Paper Series No. 6 197873, International Association of Agricultural Economists.
    6. Gerritsen, Rolf, 1992. "Labor's Final Rural "Crisis"?: Australian Rural Policy in 1990 and 1991," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 60(02), pages 1-17, August.
    7. Philippidis, G. & Hubbard, L. J., 2001. "The economic cost of the CAP revisited," Agricultural Economics, Blackwell, vol. 25(2-3), pages 375-385, September.
    8. Saunders, Caroline M. & Roningen, Vernon O., 2001. "Trade And The Environment. Linking A Partial Equilibrium Trade Model With Production Systems And Their Environmental Consequences," 2001: International Trade in Livestock Products Symposium, January 2001, Auckland, New Zealand 14552, International Agricultural Trade Research Consortium.
    9. John Whalley, 2005. "Pitfalls in the Use of Ad valorem Equivalent Representations of the Trade Impacts of Domestic Policies," CESifo Working Paper Series 1480, CESifo.
    10. Hazledine, Tim, 1989. "Industrial Organisation Foundations Of Trade Policy Modelling," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 33(1), pages 1-19, April.
    11. Liapis, Peter S., 1989. "Estimation and Evaluation of Economic Community Wheat Export Subsidies," Staff Reports 278253, United States Department of Agriculture, Economic Research Service.
    12. Tyers, Rodney, 1991. "On The Neglect Of Dynamics, Risk And Market Insulation In The Analysis Of Uruguay Round Food Trade Reforms," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 35(3), pages 1-19, December.
    13. Morris Morkre & David Tarr, 2014. "Reforming Hungarian Agricultural Trade Policy: A Quantitative Evaluation," World Scientific Book Chapters, in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 3, pages 49-74, World Scientific Publishing Co. Pte. Ltd..
    14. Bahrenian, Aniss & Meyers, William H., 1986. "EC Trade Liberalization and World Trade in Feed Grains: A Comparison and A Criticism," 1986 Annual Meeting, July 27-30, Reno, Nevada 278078, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. D. MacLaren, 1991. "Agricultural Trade Policy Analysis And International Trade Theory: A Review Of Recent Developments," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(3), pages 250-297, September.
    16. Eswaramoorthy, K., 1991. "U.S. livestock production and factor demand: a multiproduct dynamic dual approach," ISU General Staff Papers 1991010108000010523, Iowa State University, Department of Economics.
    17. McCalla, Alex F., 1992. "GATT, Preferential/Regional Trading Blocks and Agricultural Trade," 1992 Conference (36th), February 10-13, 1992, Canberra, Australia 146544, Australian Agricultural and Resource Economics Society.
    18. Hertel, Thomas W., 1991. "Applied General Equilibrium Analysis of Agricultural Policies," Staff Papers 200396, Purdue University, Department of Agricultural Economics.
    19. Purcell, Tim & Karunaratne, Neil & Tisdell, Clem, 1997. "Macroeconomic Effects of Disease Control in the Thailand Livestock Sector - A CGE Analyis," Animal Health Economics 164581, University of Queensland, School of Economics.
    20. Aradhyula, Satheesh Venkata, 1989. "Policy structure, output supply and input demand for US crops," ISU General Staff Papers 198901010800009909, Iowa State University, Department of Economics.

    More about this item

    Keywords

    world food trade; comparative-static simulation; computable general equilibrium model; model linking;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cop:wpaper:op-65. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mark Horridge (email available below). General contact details of provider: https://edirc.repec.org/data/cpmonau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.