IDEAS home Printed from https://ideas.repec.org/p/fao/wpaper/0726.html
   My bibliography  Save this paper

Agricultural Policy Impact Analysis with Multi-Market Models: A Primer

Author

Listed:
  • André Croppenstedt

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Lorenzo Giovanni Bellú

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Fabrizio Bresciani

    (The World Bank, Manila, The Philippines)

  • Stefania DiGiuseppe

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

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 multi-market 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

  • André Croppenstedt & Lorenzo Giovanni Bellú & Fabrizio Bresciani & Stefania DiGiuseppe, 2007. "Agricultural Policy Impact Analysis with Multi-Market Models: A Primer," Working Papers 07-26, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    • Handle: RePEc:fao:wpaper:0726
    as

    Download full text from publisher

    File URL: ftp://ftp.fao.org/docrep/fao/010/ai253e/ai253e00.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Sayaka, Bambang & Masjidin Siregar, Sumaryanto & Croppenstedt, André & DiGiuseppe, Stefania, 2007. "An assessment of the impact of higher yields for maize, soybean and cassava in Indonesia: A multi-market model approach," ESA Working Papers 289035, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    2. Gamal M. Siam & André Croppenstedt, 2007. "An Assessment of the Impact of Wheat Market Liberalization in Egypt; A Multi-Market Model Approach," Working Papers 07-15, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    3. Srinivasan, P. V. & Jha, Shikha, 2001. "Liberalized trade and domestic price stability. The case of rice and wheat in India," Journal of Development Economics, Elsevier, vol. 65(2), pages 417-441, August.
    4. Nicholas Minot & Francesco Goletti, 1998. "Export Liberalization and Household Welfare: The Case of Rice in Vietnam," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(4), pages 738-749.
    5. Braverman, Avishay & Hammer, Jeffrey S & Gron, Anne, 1987. "Multimarket Analysis of Agricultural Price Policies in an Operational Context: The Case of Cyprus," The World Bank Economic Review, World Bank, vol. 1(2), pages 337-356, January.
    6. Paul Dorosh & Carlo del Ninno & David E. Sahn, 1995. "Poverty alleviation in Mozambique: a multi‐market analysis of the role of food aid," Agricultural Economics, International Association of Agricultural Economists, vol. 13(2), pages 89-99, November.
    7. Lau, Lawrence J. & Yotopoulos, Pan A. & Chou, Erwin C. & Lin, Wuu-Long, 1981. "The microeconomics of distribution: A simulation of the farm economy," Journal of Policy Modeling, Elsevier, vol. 3(2), pages 175-206, May.
    8. Sayaka, Bambang & Masjidin Siregar, Sumaryanto & Croppenstedt, André & DiGiuseppe, Stefania, 2007. "An assessment of the impact of rice tariff policy in Indonesia: A multi-market model approach," ESA Working Papers 289041, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    9. Dorosh, Paul A. & Haggblade, Steven, 1997. "Shifting sands: The changing case for monetizing project food aid in Bangladesh," World Development, Elsevier, vol. 25(12), pages 2093-2104, December.
    10. World Bank, 2003. "A Guide to the World Bank," World Bank Publications - Books, The World Bank Group, number 14757, December.
    11. Aline Coudouel & Stefano Paternostro, 2005. "Analyzing the Distributional Impact of Reforms : A Practioner's Guide to Trade, Monetary and Exchange Rate Policy, Utility Provision, Agricultural Markets, Land Policy and Education, Volume 1," World Bank Publications - Books, The World Bank Group, number 7251, December.
    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. Roberto Ponce & María Blanco & Carlo Giupponi, 2014. "Climate Change, Water Scarcity in Agriculture and the Country-Level Economic Impacts. A Multimarket Analysis," Serie Working Papers 02, Universidad del Desarrollo, School of Business and Economics, revised Nov 2014.
    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. 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.
    4. 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.
    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).

    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. Bambang Sayaka & Sumaryanto & Masjidin Siregar & André Croppenstedt & Stefania DiGiuseppe, 2007. "An Assessment of the Impact of Higher Yields for Maize, Soybean and Cassava in Indonesia: A Multi-Market Model Approach," Working Papers 07-25, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    2. Gamal M. Siam & André Croppenstedt, 2007. "An Assessment of the Impact of Wheat Market Liberalization in Egypt; A Multi-Market Model Approach," Working Papers 07-15, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    3. Donovan, Cynthia & McGlinchy, Megan & Staatz, John M. & Tschirley, David L., 2006. "Emergency Needs Assessments and the Impact of Food Aid on Local Markets," Food Security International Development Working Papers 54566, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    4. Barraud, Ariel & Calfat, Germán, 2006. "The effects of liberalizing the yellow maize market in Guatemala: a partial equilibrium multi-market approach," IOB Working Papers 2006.03, Universiteit Antwerpen, Institute of Development Policy (IOB).
    5. Umboh, Sintya Jummoni Krissanty & Hakim, Dedi Budiman & Sinaga, Bonar Marulitua & Kariyasa, Ketut, 2014. "Impact Of Maize Import Tariff Policy Changes On Production And Consumption In Indonesia: A Multimarket Model Analysis," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 2(2), pages 1-14, April.
    6. Balié, Jean & Valera, Harold Glenn, 2020. "Domestic and international impacts of the rice trade policy reform in the Philippines," Food Policy, Elsevier, vol. 92(C).
    7. Dwayne Benjamin & Loren Brandt, 2002. "Agriculture and Income Distribution in Rural Vietnam under Economic Reforms: A Tale of Two Regions," Working Papers benjamin-02-01, University of Toronto, Department of Economics.
    8. Brockhaus, Jan & Kalkuhl, Matthias & Kozicka, Marta, 2016. "What Drives India’s Rice Stocks? Empirical Evidence," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235659, Agricultural and Applied Economics Association.
    9. Fabienne Féménia & Alexandre Gohin, 2010. "Faut-il une intervention publique pour stabiliser les marchés agricoles ? Revue des questions non résolues," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 91(4), pages 435-456.
    10. Nguyen, Huy, 2014. "The effect of land fragmentation on labor allocation and the economic diversity of farm households: The case of Vietnam," MPRA Paper 57521, University Library of Munich, Germany.
    11. Ferrière, Nathalie & Suwa-Eisenmann, Akiko, 2015. "Does Food Aid Disrupt Local Food Market? Evidence from Rural Ethiopia," World Development, Elsevier, vol. 76(C), pages 114-131.
    12. Ahmed, Vaqar & O' Donoghue, Cathal, 2007. "CGE-Microsimulation Modelling: A Survey," MPRA Paper 9307, University Library of Munich, Germany.
    13. Sina Xie & Orachos Napasintuwong, 2014. "Review of Rice Policies in China, Thailand and Vietnam," Working Papers 201403, Kasetsart University, Department of Agricultural and Resource Economics.
    14. Vergez, Antonin, 2007. "Agricultural Price Seasonality and Market Failure: Examining the Net Seller Household and the Net Benefit Ratio Definition," 106th Seminar, October 25-27, 2007, Montpellier, France 7911, European Association of Agricultural Economists.
    15. Braverman, Avishay & Guasch, J. Luis, 1989. "Rural credit in developing countries," Policy Research Working Paper Series 219, The World Bank.
    16. Johnson, Michael & Dorosh, Paul, 2015. "Optimal Tariffs with Smuggling: A Spatial Analysis of Nigerian Rice Policy Options," 2015 Conference, August 9-14, 2015, Milan, Italy 211816, International Association of Agricultural Economists.
    17. Elena Ianchovichina & Alessandro Nicita & Isidro Soloaga, 2002. "Trade Reform and Poverty: The Case of Mexico," The World Economy, Wiley Blackwell, vol. 25(7), pages 945-972, July.
    18. Alberto Chong & Florencio Lopez-De-Silanes, 2015. "Money Laundering and Its Regulation," Economics and Politics, Wiley Blackwell, vol. 27(1), pages 78-123, March.
    19. Donald F. Larson & Julian Lampietti & Christophe Gouel & Carlo Cafiero & John Roberts, 2014. "Food Security and Storage in the Middle East and North Africa," The World Bank Economic Review, World Bank, vol. 28(1), pages 48-73.

    More about this item

    Keywords

    Multi-market models; agricultural policy impact analysis.;

    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

    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:fao:wpaper:0726. 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: Gustavo Anríquez (email available below). General contact details of provider: https://edirc.repec.org/data/faoooit.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.