Dairy disaggregation and joint production in an economy-wide model
AbstractWe examine the impact of dairy disaggregation and joint production on trade liberalisation outcomes in an economy-wide model. Depending on parameterisation, our model includes either (a) a single dairy commodity, (b) several dairy commodities without joint production, or (c) several dairy commodities with joint production. In a numerical application, we consider the removal of US tariffs on dairy exports from New Zealand (the world's largest dairy exporter). We show that failing to account for joint production when dairy commodities are disaggregated leads to misleading results. Our preferred dairy production function differs from those used in other applied trade models.
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Bibliographic InfoPaper provided by University of Otago, Department of Economics in its series Working Papers with number 0810.
Length: 28 pages
Date of creation: Nov 2008
Date of revision: Nov 2008
Disaggregation; joint production; trade liberalisation;
Find related papers by JEL classification:
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- F15 - International Economics - - Trade - - - Economic Integration
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