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A Modified Leontief Model For Analysing The Impact Of Milk Quotas On The Wider Economy

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  • D. Roberts

Abstract

The paper estimates the impact of milk quotas on the UK economy using a modified SAM‐based Leontief model. Since milk quotas involve the control of gross output as opposed to final demand, it is argued that the traditional form of a Leontief model needs to be adapted so as to make the output of dairy producers exogenous to the system. Modifications to both the demand‐driven and supply‐driven Leontief model are suggested thus allowing the estimation of both the backward and forward linkage effects of quotas. The results suggest that, in total, the backward linkage effects of milk quotas are more significant than the forward linkage effects, with the magnitude of the latter constrained by the pattern of milk marketing. Taking both types of linkages into account, it is estimated that the potential 3 per cent further reduction in quota levels being discussed in the context of CAP reform threatens a total of 11,000 jobs in the economy.

Suggested Citation

  • D. Roberts, 1994. "A Modified Leontief Model For Analysing The Impact Of Milk Quotas On The Wider Economy," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(1), pages 90-99, January.
    • Handle: RePEc:bla:jageco:v:45:y:1994:i:1:p:90-99
    DOI: 10.1111/j.1477-9552.1994.tb00380.x
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    References listed on IDEAS

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    1. Leroy P. Jones, 1976. "The Measurement of Hirschmanian Linkages," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(2), pages 323-333.
    2. P. Midmore, 1993. "Input‐Output Forecasting Of Regional Agricultural Policy Impacts," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(2), pages 284-300, May.
    3. Pyatt, F Graham & Round, Jeffery I, 1979. "Accounting and Fixed Price Multipliers in a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 89(356), pages 850-873, December.
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    Cited by:

    1. Christos T. Papadas & Dale C. Dahl, 1999. "Supply‐Driven Input‐Output Multipliers," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 269-285, May.
    2. Gunnar Lindberg, 2011. "On the appropriate use of (input-output) coefficients to generate non-survey regional input-output tables: Implications for the determination of output multipliers," ERSA conference papers ersa10p800, European Regional Science Association.
    3. Kim, Man-keun, 2015. "Supply Driven Input-Output Analysis: Case of 2010-2011 Foot-and-Mouth Disease in Korea," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 38(2), pages 1-16, June.
    4. G. Lindberg & P. Midmore & Y. Surry, 2012. "Agriculture’s Inter-industry Linkages, Aggregation Bias and Rural Policy Reforms," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(3), pages 552-575, September.
    5. Monika Pepłowska & Piotr Olczak, 2024. "Review of Research on the Impact of Changes Resulting from the Hard Coal Mining Sector in Poland on the GDP Value," Energies, MDPI, vol. 17(6), pages 1-24, March.
    6. Seung, Chang K. & Waters, Edward C. & Barbeaux, Steven J., 2021. "Community-level economic impacts of a change in TAC for Alaska fisheries: A multi-regional framework assessment," Ecological Economics, Elsevier, vol. 186(C).
    7. Hristov, Jordan, 2015. "An exploratory analysis of the impact of climate change on Macedonian agriculture," 2015 Conference, August 9-14, 2015, Milan, Italy 211747, International Association of Agricultural Economists.
    8. Borzoni, Matteo, 2011. "Multi-scale integrated assessment of soybean biodiesel in Brazil," Ecological Economics, Elsevier, vol. 70(11), pages 2028-2038, September.
    9. Chang K. Seung, 2014. "Estimating effects of exogenous output changes: an application of multi-regional social accounting matrix (MRSAM) method to natural resource management," Regional Science Policy & Practice, Wiley Blackwell, vol. 6(2), pages 177-193, June.
    10. Kim, Dongseok, 2021. "Measuring the Impact of a Trade Dispute with a Supply-side Shock Using a Supply-driven Input-Output Analysis: Korea-Japan Dispute Case," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 43(1), pages 29-52.
    11. repec:rre:publsh:v:34:y:2004:i:1:p:57-71 is not listed on IDEAS
    12. Seung, Chang K., 2017. "A Multi-regional Economic Impact Analysis of Alaska Salmon Fishery Failures," Ecological Economics, Elsevier, vol. 138(C), pages 22-30.

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