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Economic impacts of agricultural policy responses to the outbreak of COVID-19


  • Adrián Saldarriaga-Isaza
  • Dora Elena Jiménez


The aim of this article is to evaluate the general economic impact of the policies focused on the agricultural sector decreed by the Colombian government within the State of Economic, Social, and Ecological Emergency to mitigate the negative effects of the COVID-19 pandemic on this sector. We use a computable general equilibrium model, calibrated with a social accounting matrix that was expanded to focus on specific crops and considered different sizes of agricultural production units. We find that, in general, this set of policies does not have adverse effects but increases the agricultural production of the units receiving the incentives, especially of small and medium-sized farms. In turn, they also increase the demand for unskilled labor, rural households’ disposable income, and consumption compared with pre-covid levels. The results are conditional on the options to finance this set of policies. Also, depending on the financing option, the income gap between rural and urban areas could either narrow or widen

Suggested Citation

  • Adrián Saldarriaga-Isaza & Dora Elena Jiménez, 2022. "Economic impacts of agricultural policy responses to the outbreak of COVID-19," Estudios Gerenciales, Universidad Icesi, vol. 38(163), pages 200-210, June.
  • Handle: RePEc:col:000129:020218
    DOI: 10.18046/j.estger.2022.163.4924

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    References listed on IDEAS

    1. André Decoster & Jason Loughrey & Cathal O'Donoghue & Dirk Verwerft, 2010. "How regressive are indirect taxes? A microsimulation analysis for five European countries," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(2), pages 326-350.
    2. Dan Pan & Jiaqing Yang & Guzhen Zhou & Fanbin Kong, 2020. "The influence of COVID-19 on agricultural economy and emergency mitigation measures in China: A text mining analysis," PLOS ONE, Public Library of Science, vol. 15(10), pages 1-20, October.
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    More about this item


    Covid-19; agricultural policy; distributional effects;
    All these keywords.

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models


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