IDEAS home Printed from https://ideas.repec.org/a/bla/jageco/v49y1998i3p458-471.html
   My bibliography  Save this article

The Economy‐Wide Effects of the BSE Crisis: A CGE Analysis

Author

Listed:
  • Scott McDonald
  • Deborah Roberts

Abstract

A Computable General Equilibrium (CGE) model of the UK economy is used to investigate the economy‐wide effects of the BSE crisis. The impact of two alternative government strategies for dealing with the crisis, support buying and subsidy payments, are compared with the scenario of no government intervention. The results indicate that whilst the macroeconomic consequences of the crisis may be small in percentage terms, substitution and resource re‐allocation effects are substantial. In particular, the impact spreads far beyond those directly impacted by the shock with some sectors of the food industry benefiting. Moreover the alternative government strategies have very different macro economic and intersectoral effects. It is argued that the results support the further development of the model and underlying database.

Suggested Citation

  • Scott McDonald & Deborah Roberts, 1998. "The Economy‐Wide Effects of the BSE Crisis: A CGE Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 458-471, September.
    • Handle: RePEc:bla:jageco:v:49:y:1998:i:3:p:458-471
    DOI: 10.1111/j.1477-9552.1998.tb01285.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1477-9552.1998.tb01285.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1477-9552.1998.tb01285.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Robinson, Sherman & Kilkenny, Maureen & Hanson, Kenneth, 1990. "The USDA/ERS Computable General Equilibrium (CGE) Model of the United States," Staff Reports 278341, United States Department of Agriculture, Economic Research Service.
    2. Jean-Marc Burniaux & François Delorme & Ian Lienert & John P. Martin & Peter Hoeller, 1988. "Quantifying the Economy-Wide Effects of Agricultural Policies: A General Equilibrium Approach," OECD Economics Department Working Papers 55, OECD Publishing.
    3. Roberts, Deborah, 1995. "UK Agriculture in the Wider Economy: The Importance of Net SAM Linkage Effects," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 22(4), pages 495-511.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dimitrios Panagiotou & Azzeddine M. Azzam, 2010. "Trade Bans, Imperfect Competition, and Welfare: BSE and the U.S. Beef Industry," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(1), pages 109-129, March.
    2. Boulanger, Pierre H & Dudu, Hasan & Ferrari, Emanuele & Philippidis, George, 2015. "The cost of import prohibition for political reason: CGE analysis of the Russian ban on agri-food products," Conference papers 332613, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Pierre Boulanger & Hasan Dudu & Emanuele Ferrari & George Philippidis, 2016. "Russian Roulette at the Trade Table: A Specific Factors CGE Analysis of an Agri-food Import Ban," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 272-291, June.
    4. Burrell, A., 2011. "Is it becoming more difficult to research EU agricultural sector policies?," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 46, March.
    5. Rocchi, Benedetto & Romano, Donato & Stefani, Gianluca, 2002. "Agriculture and Income Distribution: Insights from a SAM of the Italian Economy," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24919, European Association of Agricultural Economists.
    6. Lloyd, Tim A. & Morgan, C. Wyn & McCorriston, Steve & Rayner, Anthony J., 2003. "The Impact Of Food Scares On Price Transmission In Inter-Related Markets," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25904, International Association of Agricultural Economists.
    7. Nin Pratt, A. & Bonnet, P. & Jabbar, Mohammad A. & Ehui, Simeon K. & de Haan, C., 2005. "Benefits and cost of compliance of compliance of sanitary regulations in livestock markets: the case of Rift valley Fever in the Somali Region of Ethiopia," Research Reports 182867, International Livestock Research Institute.
    8. Verbeke, Wim & Ward, Ronald W., 2001. "A fresh meat almost ideal demand system incorporating negative TV press and advertising impact," Agricultural Economics, Blackwell, vol. 25(2-3), pages 359-374, September.
    9. Zamani, Omid & Chibanda, Craig & Pelikan, Janine, 2021. "Investigating Alternative Poultry Trade Policies in the Context of African Countries: Evidence from Ghana," 2021 Conference, August 17-31, 2021, Virtual 315173, International Association of Agricultural Economists.
    10. Burrell, Alison M., 2010. "Is it becoming more difficult to research EU agricultural sector policies?," 50th Annual Conference, Braunschweig, Germany, September 29-October 1, 2010 93946, German Association of Agricultural Economists (GEWISOLA).
    11. Christine Wieck & David Holland, 2010. "The economic effect of the Canadian BSE outbreak on the US economy," Applied Economics, Taylor & Francis Journals, vol. 42(8), pages 935-946.
    12. L. J. Hubbard & G. Philippidis, 2001. "General Equilibrium and the Ban on British Beef Exports," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(3), pages 87-95, September.
    13. Zamani, Omid & Chibanda, Craig & Pelikan, Janine, 2020. "Tariff Escalation and Import Bans in the Economic Partnership Agreement between the EU and West Africa," Conference papers 333239, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    14. Devadoss, Stephen & Holland, David W. & Stodick, Leroy & Ghosh, Joydeep, 2006. "A General Equilibrium Analysis of Foreign and Domestic Demand Shocks Arising from Mad Cow Disease in the United States," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(2), pages 1-13, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yu, Wusheng & Hertel, Thomas W. & Preckel, Paul V. & Eales, James S., 2004. "Projecting world food demand using alternative demand systems," Economic Modelling, Elsevier, vol. 21(1), pages 99-129, January.
    2. G. Andrew Bernat, Jr. & Kenneth Hanson, 1995. "Regional Impacts Of Farm Programs: A Top-Down CGE Analysis," The Review of Regional Studies, Southern Regional Science Association, vol. 25(3), pages 331-350, Winter.
    3. Scott McDonald & Cecilia Punt, 2004. "Trade Liberalisation, Efficiency and South Africa's Sugar Industry," Working Papers 2004012, The University of Sheffield, Department of Economics, revised Aug 2004.
    4. Betsey A. Kuhn, 1996. "Policy Watch: The Food Stamp Program and Welfare Reform," Journal of Economic Perspectives, American Economic Association, vol. 10(2), pages 189-198, Spring.
    5. Benedetto Rocchi & Donato Romano & Gianluca Stefani, 2005. "Distributive impacts of alternative agricultural policies: A SAM-based analysis for Italy," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 77, pages 85-112.
    6. Robinson, Sherman & Yunez-Naude, Antonio & Hinojosa-Ojeda, Raul & Lewis, Jeffrey D. & Devarajan, Shantayanan, 1999. "From stylized to applied models:: Building multisector CGE models for policy analysis," The North American Journal of Economics and Finance, Elsevier, vol. 10(1), pages 5-38.
    7. Sandra Polaski et al, 2008. "Policy dilemmas in India: The Impact of changes in agricultural prices on rural and urban poverty," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2008-012, Indira Gandhi Institute of Development Research, Mumbai, India.
    8. Yu, Wusheng & Hertel, Thomas W. & Preckel, Paul V. & Eales, James S., 2004. "Projecting world food demand using alternative demand systems," Economic Modelling, Elsevier, vol. 21(1), pages 99-129, January.
    9. Weyerbrock, Silvia, 1995. "Can the European community absorb more immigrants? A general equilibrium analysis of the labor market and macroeconomic effects of east-west migration in Europe," Journal of Policy Modeling, Elsevier, vol. 17(2), pages 85-120, April.
    10. Psaltopoulos, Demetris & Balamou, Eudokia & Skuras, Dimitris & Ratinger, Tomas & Sieber, Stefan, 2011. "Modelling the impacts of CAP Pillar 1 and 2 measures on local economies in Europe: Testing a case study-based CGE-model approach," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 53-69, January.
    11. Orlov, Anton & Grethe, Harald & McDonald, Scott, 2013. "Carbon taxation in Russia: Prospects for a double dividend and improved energy efficiency," Energy Economics, Elsevier, vol. 37(C), pages 128-140.
    12. David W. Marcouiller & Dean F. Schreiner & David K. Lewis, 1996. "The Impact Of Forest Land Use On Regional Value Added," The Review of Regional Studies, Southern Regional Science Association, vol. 26(2), pages 211-233, Fall.
    13. Fritz Breuss & Jean Tesche, 1994. "A general equilibrium evaluation of trade and industrial policy changes in Austria and Hungary," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 130(3), pages 534-552, September.
    14. Chebbi, Houssem Eddine & Lachaal, Lassaad, 2006. "What Role for The Agricultural Sector in the Process Of Economic Growth of Tunisia? Evidence from Multivariate Cointegration," Conference papers 331513, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Gundersen, Craig & LeBlanc, Michael & Kuhn, Betsey A., 1999. "The Changing Food Assistance Landscape: The Food Stamp Program in a Post-Welfare Reform Environment," Agricultural Economic Reports 33993, United States Department of Agriculture, Economic Research Service.
    16. Burrell, Alison M., 2010. "Is it becoming more difficult to research EU agricultural sector policies?," 50th Annual Conference, Braunschweig, Germany, September 29-October 1, 2010 93946, German Association of Agricultural Economists (GEWISOLA).
    17. Osman, Rehab & Ferrari, Emanuele & McDonald, Scott, 2015. "Water Quality Assessment SAM/CGE and Satellite Accounts Integrated Framework-Egypt," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204292, Agricultural Economics Society.
    18. Hazledine, Tim, 1989. "Industrial Organisation Foundations Of Trade Policy Modelling," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 33(1), pages 1-19, April.
    19. Anderson, James E., 1998. "Effective protection redux1," Journal of International Economics, Elsevier, vol. 44(1), pages 21-44, February.
    20. McDonald, Scott & Pauw, Kalie & Punt, Cecilia, 2004. "The Welfare Impacts of Domestic and International Agricultural Efficiency Gains: A South African Case Study," 2004 Inaugural Symposium, December 6-8, 2004, Nairobi, Kenya 9522, African Association of Agricultural Economists (AAAE).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jageco:v:49:y:1998:i:3:p:458-471. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0021-857X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.