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Tariff line analysis of U.S. and international dairy protection

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  • Jason H. Grant
  • Thomas W. Hertel
  • Thomas F. Rutherford

Abstract

General equilibrium (GE) models have been criticized because of policy aggregation issues. Partial equilibrium (PE) models can be more disaggregated but do not account for the economy‐wide effects from trade reform. In this article, we illustrate a methodology that combines a fully disaggregated, subsector (PE) model with a standard GE framework permitting us to extend GE analysis to the tariff line. We offer some insight into the aggregation errors implicit in standard GE analyses by comparing our PE/GE approach to that of GE only under a global dairy liberalization experiment. Our PE/GE approach allows for a comprehensive treatment of tariff rate quotas at the sub‐sector level across narrowly defined product lines.

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  • Jason H. Grant & Thomas W. Hertel & Thomas F. Rutherford, 2007. "Tariff line analysis of U.S. and international dairy protection," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 271-280, December.
    • Handle: RePEc:bla:agecon:v:37:y:2007:i:s1:p:271-280
    DOI: 10.1111/j.1574-0862.2007.00251.x
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    1. Hertel, Thomas & Hummels, David & Ivanic, Maros & Keeney, Roman, 2007. "How confident can we be of CGE-based assessments of Free Trade Agreements?," Economic Modelling, Elsevier, vol. 24(4), pages 611-635, July.
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    Cited by:

    1. Himics, Mihaly & Listorti, Giulia & Tonini, Axel, 2020. "Simulated economic impacts in applied trade modelling: A comparison of tariff aggregation approaches," Economic Modelling, Elsevier, vol. 87(C), pages 344-357.
    2. Himics, Mihaly & Listorti, Giulia & Tonini, Axel, 2017. "Advanced tariff aggregation in global trade models: dismantling tariffs on the Swiss beef market," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261284, European Association of Agricultural Economists.
    3. Yaghoob Jafari & Mihaly Himics & Wolfgang Britz & Jayson Beckman, 2021. "It is all in the details: A bilateral approach for modelling trade agreements at the tariff line," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 69(3), pages 415-442, September.
    4. Charteris, Angus & Winchester, Niven, 2010. "Dairy disaggregation and joint production in an economy-wide model," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), pages 1-17.
    5. Angus Charteris & Niven Winchester, 2010. "Dairy disaggregation and joint production in an economy-wide model *-super-‡," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), pages 491-507, October.
    6. Ballingall, John & Winchester, Niven, 2008. "Miles and more: A quantitative assessment of the ‘food miles’ movement," Conference papers 331704, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Britz, Wolfgang & van der Mensbrugghe, Dominique, 2016. "Reducing unwanted consequences of aggregation in large-scale economic models - A systematic empirical evaluation with the GTAP model," Economic Modelling, Elsevier, vol. 59(C), pages 463-472.
    8. Himics, Mihály & Britz, Wolfgang, 2016. "Flexible and welfare-consistent tariff aggregation over exporter regions," Economic Modelling, Elsevier, vol. 53(C), pages 375-387.
    9. Brockmeier, Martina & Bektasoglu, Beyhan, 2014. "Model structure or data aggregation level: Which leads to greater bias of results?," Economic Modelling, Elsevier, vol. 38(C), pages 238-245.
    10. Saeed, Wajiha & Hertel, Thomas & Chepeliev, Maksym & Golub, Alla & Beckman, Jayson, 2020. "U. S. Trade Policies and Their Impact on Domestic Vegetables, Fruits and Nuts Sector: Application of the GTAP-HS Modelling Framework," Conference papers 330204, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. John Ballingall & Niven Winchester, 2010. "Food Miles: Starving the Poor?," The World Economy, Wiley Blackwell, vol. 33(10), pages 1201-1217, October.
    12. Kunimitsu, Yoji, 2024. "Regional aggregation bias in the global computable general equilibrium model: Issues in assessing the economic impact of climate change and trade liberalization," Economic Modelling, Elsevier, vol. 141(C).
    13. Beyhan Bektasoglu & Tanja Engelbert & Martina Brockmeier, 2017. "The Effect of Aggregation Bias: An NTB-modelling Analysis of Turkey's Agro-food Trade with the EU," The World Economy, Wiley Blackwell, vol. 40(10), pages 2255-2276, October.

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