Global Distortions to Agricultural Markets: New Indicators of Trade and Welfare Impacts, 1960 to 2007
Despite recent reforms, world agricultural markets remain highly distorted by government policies. Traditional indicators of those price distortions such as producer and consumer support estimates (PSEs and CSEs) can be poor guides to the policiesÂ’ economic effects. Recent theoretical literature provides scalar index numbers of trade- and welfare-reducing effects of price and trade policies which this paper builds on to develop more-satisfactory indexes that can be generated using no more than the data used to generate PSEs and CSEs. We then exploit a new Agricultural Distortion database to provide time series estimates of index numbers for 75 developing and high-income countries over the past half century.
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- Anderson, Kym & Kurzweil, Marianne & Martin, Will & Sandri, Damiano & Valenzuela, Ernesto, 2008.
"Measuring distortions to agricultural incentives, revisited,"
World Trade Review,
Cambridge University Press, vol. 7(04), pages 675-704, October.
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"Estimating trade restrictiveness indices,"
Policy Research Working Paper Series
3840, The World Bank.
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Agricultural Distortions Working Paper
48557, World Bank.
- Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2004.
"Import Demand Elasticities and Trade Distortions,"
CEPR Discussion Papers
4669, C.E.P.R. Discussion Papers.
- Valenzuela, Ernesto & Wong, Sara & Sandri, Damiano, 2007. "Distortions to Agricultural Incentives in Ecuador," Agricultural Distortions Working Paper 48394, World Bank.
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