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On The Neglect Of Dynamics, Risk And Market Insulation In The Analysis Of Uruguay Round Food Trade Reforms

  • Rodney Tyers

The substantial investment in models of international food markets prior to and during the Uruguay Round of international trade negotiations has been a mixed blessing so far as the prospects for reform are concerned. At worst, results from these models have misled the negotiations because they have most often ignored a primary concern lending domestic political support to food market interventions, namely the avoidance of risks borne of dependence on international markets. In this paper the reasons for market insulating policies are reviewed and their links with protection elucidated. Some errors that have stemmed from the application of 'standard' but inappropriate models are noted. Finally, the implications of extending the standard method to include dynamic behaviour and market insulating policies are examined.

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Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

Volume (Year): 35 (1991)
Issue (Month): 3 (December)
Pages: 295-313

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Handle: RePEc:bla:ajarec:v:35:y:1991:i:3:p:295-313
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  1. Tyers, Rod, 1990. "Implicit policy preferences and the assessment of negotiable trade policy reforms," European Economic Review, Elsevier, vol. 34(7), pages 1399-1426, November.
  2. Tyers, Rod, 1989. "Developing country interests in agricultural trade reform," Agricultural Economics, Blackwell, vol. 3(3), pages 169-186, October.
  3. Valdés, Alberto & Zietz, Joachim A., 1980. "Agricultural protection in OECD countries: its cost to less-developed countries," Research reports 21, International Food Policy Research Institute (IFPRI).
  4. Turnovsky, Stephen J & Shalit, Haim & Schmitz, Andrew, 1980. "Consumer's Surplus, Price Instability, and Consumer Welfare," Econometrica, Econometric Society, vol. 48(1), pages 135-52, January.
  5. Rod Tyers, 1990. "Trade Reform and Price Risk in Domestic and International Food Markets," The World Economy, Wiley Blackwell, vol. 13(2), pages 212-229, 06.
  6. Dixit, Avinash, 1987. "Trade and insurance with moral hazard," Journal of International Economics, Elsevier, vol. 23(3-4), pages 201-220, November.
  7. Peter Gibbard & Rod Tyers, 1990. "The Distributional Incidence of Commodity Price Stabilization in an Open Economy," School of Economics Working Papers 1990-02, University of Adelaide, School of Economics.
  8. 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 235-48, September.
  9. Zietz, Joachim A. & Valdés, Alberto, 1988. "Agriculture in the GATT: an analysis of alternative approaches to reform," Research reports 70, International Food Policy Research Institute (IFPRI).
  10. Sampson, Gary P & Snape, Richard H, 1980. "Effects of the EEC's Variable Import Levies," Journal of Political Economy, University of Chicago Press, vol. 88(5), pages 1026-40, October.
  11. Anderson, Kym & Tyers, Rod, 1992. "Effects of Gradual Food Policy Reforms in the 1990s," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 19(1), pages 1-24.
  12. Tyers,Rod & Anderson,Kym, 1992. "Disarray in World Food Markets," Cambridge Books, Cambridge University Press, number 9780521351058, October.
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