Modeling the Welfare Implications of Agricultural Policies in Developing Countries
This paper presents a new model which incorporates features of developing country agriculture that may be critical in shaping the welfare outcomes of alternative agricultural policies. The model features heterogeneous households linked through markets in a rural economy-wide structure, with endogenous market participation for farmers facing transactions costs. The model is used for policy simulations, including market price support, production subsidies, input subsidies, transaction cost removal, and unconditional cash transfers. Applications for six countries highlight the diversity of potential impacts of such policies. The simulation results suggest that there are circumstances under which some market interventions, such as input subsidies, may be only slightly less efficient at transferring incomes than direct payments.
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|Date of creation:||15 May 2012|
|Date of revision:|
|Publication status:||Published as Jonasson, Erik, Mateusz Filipski, Jonathan Brooks and J. Edward Taylor, 'Modeling the Welfare Implications of Agricultural Policies in Developing Countries' in Journal of Policy Modeling, 2014, pages 63-82.|
|Contact details of provider:|| Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden|
Phone: +46 +46 222 0000
Fax: +46 +46 2224613
Web page: http://www.nek.lu.se/en
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