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Dairy disaggregation and joint production in an economy-wide model *-super-‡

  • Angus Charteris
  • Niven Winchester
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    We 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 (i) a single dairy commodity, (ii) several dairy commodities without joint production or (iii) 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. Our analysis can be used to determine when accounting for joint production in other sectors is important. Copyright 2010 The Authors. AJARE 2010 Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishing Asia Pty Ltd.

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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): 54 (2010)
    Issue (Month): 4 (October)
    Pages: 491-507

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    Handle: RePEc:bla:ajarec:v:54:y:2010:i:4:p:491-507
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    1. 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.
    2. Kym Anderson & Dominique van der Mensbrugghe, 2007. "Effects of Multilateral and Preferential Trade Policy Reform in Africa: The Case of Uganda," Centre for International Economic Studies Working Papers 2007-05, University of Adelaide, Centre for International Economic Studies.
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