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Poverty impacts of agricultural policy adjustments in an opening economy: the case of Colombia

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  • Ricardo Argüello C

    ()

  • Daniel Valderrama G.

    ()

  • Sandra Acero W.

Abstract

We aim to contribute to the assessment of poverty impacts on the rural sector arising from agricultural policy adjustments in Colombia. For this we use an agriculture specialized static CGE model, jointly (sequentially) with a microsimulation model that allows for effective job relocation. Results indicate that the sectoral impact of the program implemented tends to be small and has considerable variability across crops. They also show that the highest impacts come from the irrigation and land improvements component of the program. Lastly, although it reduces poverty, poverty impacts are small and tend to concentrate in rural households toward the middle of the income distribution ladder.

Suggested Citation

  • Ricardo Argüello C & Daniel Valderrama G. & Sandra Acero W., 2011. "Poverty impacts of agricultural policy adjustments in an opening economy: the case of Colombia," Documentos de Trabajo 008575, Universidad del Rosario.
  • Handle: RePEc:col:000092:008575
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    References listed on IDEAS

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    1. Carlos Medina & Christian Manuel Posso Suárez, 2010. "Technical Change and Polarization of the Labor Market: Evidence for Brazil, Colombia and Mexico," BORRADORES DE ECONOMIA 007269, BANCO DE LA REPÚBLICA.
    2. Wayne Thirsk, 1974. "Factor Substitution in Colombian Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(1), pages 73-84.
    3. Luc Savard, 2003. "Poverty and Income Distribution in a CGE-Household Micro-Simulation Model: Top-Down/Bottom Up Approach," Cahiers de recherche 0343, CIRPEE.
    4. François Bourguignon & Maurizio Bussolo & John Cockburn, 2010. "Guest Editorial - Macro-micro analytics: background, motivation, advantages and remaining challenges," International Journal of Microsimulation, International Microsimulation Association, vol. 3(1), pages 1-7.
    5. Boys, Kathryn A. & Florax, Raymond J.G.M., 2007. "Meta-Regression Estimates for CGE Models: A Case Study for Input Substitution Elasticities in Production Agriculture," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9683, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Brooks, Jonathan & Filipski, Mateusz & Jonasson, Erik & Taylor, J. Edward, 2010. "Modelling The Distributional Impacts Of Agricultural Policies In Developing Countries: The Development Policy Evaluation Model (Devpem)," 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland 91961, Agricultural Economics Society.
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    More about this item

    Keywords

    Agricultural Policy; Colombia; AIS; Applied General Equilibrium; Rural Poverty; Microsimulation;
    All these keywords.

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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