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Challenges in Modeling the Effects of Trade Agreements on the Agricultural Sector

  • Westhoff, Patrick C.
  • Fabiosa, Jacinto F.
  • Beghin, John C.
  • Meyers, William H.

Major issues and challenges encountered in modeling and analyzing agricultural and trade policy reforms are reviewed. We focus on the modeling approach and pay special attention to the type and scope of the models, the calibration of a realistic baseline scenario, the representation of the reform agreement, the use of extra-model information, the choice of metrics to measure reform impacts, and emerging issues in policy modeling. Existing solutions and unresolved issues are examined. We stress the complementarity of various modeling approaches in assessing policy reforms and the importance of helping users understand the limitations of the chosen approach. Keywords: agricultural policy, economic modeling, trade agreements. JEL classification: Q17, Q18, F13

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File URL: http://www.card.iastate.edu/publications/DBS/PDFFiles/04wp358.pdf
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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 11673.

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Date of creation: 01 Jan 2004
Date of revision:
Publication status: Published in Journal of Agricultural and Applied Economics 2004, vol. 36 no. 2, pp. 383-393
Handle: RePEc:isu:genres:11673
Contact details of provider: Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
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  1. Meilke, Karl D. & McClatchy, Don & Gorter, Harry de, 1996. "Challenges in quantitative economic analysis in support of multilateral trade negotiations," Agricultural Economics, Blackwell, vol. 14(3), pages 185-200, August.
  2. Beghin, John C. & Bureau, Jean-Christophe, 2001. "Quantitative Policy Analysis of Sanitary, Phytosanitary and Technical Barriers to Trade," Staff General Research Papers 5119, Iowa State University, Department of Economics.
  3. Helmar, Michael D. & Meyers, William H. & Hayes, Dermot J., 1994. "Gatt and Cap Reform: Different, Similar, or Redundant?," Staff General Research Papers 10867, Iowa State University, Department of Economics.
  4. Richard E. Just, 2001. "Addressing the Changing Nature of Uncertainty in Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1131-1153.
  5. Hart, Chad E. & Babcock, Bruce A., 2002. "U.S. Farm Policy and the WTO: How Do They Match Up?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 3(1).
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