Modelling the Distributional Implications of Agricultural Policies in Developing Countries: The Development Policy Evaluation Model (DEVPEM)
AbstractThis paper presents the Development Policy Evaluation Model (DEVPEM), a new simulation model which captures four critical aspects of rural economies in developing countries: (1) the role of the household as both a producer and a consumer of food crops; (2) high transaction costs of participating in markets; (3) market linkages among heterogeneous rural producers and consumers; (4) the imperfect convertibility of land from one use to another. The results of simulations for six country models show that no untargeted agricultural policy intervention is pro-poor within the rural economy. While agricultural policy instruments are less efficient at raising rural incomes than direct payments, the degree of inefficiency of some market interventions, notably input subsidies, is not inevitably as high as observed in developed OECD countries.
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Bibliographic InfoPaper provided by OECD Publishing in its series OECD Food, Agriculture and Fisheries Papers with number 50.
Date of creation: 15 Nov 2011
Date of revision:
general equilibrium; welfare; agricultural policy; household analysis;
This paper has been announced in the following NEP Reports:
- NEP-AFR-2011-12-05 (Africa)
- NEP-AGR-2011-12-05 (Agricultural Economics)
- NEP-ALL-2011-12-05 (All new papers)
- NEP-CMP-2011-12-05 (Computational Economics)
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- Jonasson, Erik & Filipski, Mateusz & Brooks, Jonathan & Taylor, J. Edward, 2012. "Modeling the Welfare Implications of Agricultural Policies in Developing Countries," Working Papers, Lund University, Department of Economics 2012:11, Lund University, Department of Economics.
- Jonasson, Erik & Filipski, Mateusz & Brooks, Jonathan & Taylor, J. Edward, 2012. "Modeling the Welfare Impacts of Agricultural Policies in Developing Countries," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil, International Association of Agricultural Economists 125105, International Association of Agricultural Economists.
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