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Poverty Impacts of Agricultural Policy Adjustments in an Opening Economy: the Case of Colombia

Author

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  • Ricardo Arguello
  • Daniel Valderrama G.
  • Sandra Acero W.

Abstract

We aim to assess the sectoral and poverty impacts of changes in agricultural policy in Colombia on the rural sector. For this we use an agriculture specialized static CGE model, together with a microsimulation model that allows employment to shift between sectors. The results indicate that the sectoral impact of the implemented program tends to be small and varies considerably across crops. Also, while it does reduce poverty, these impacts are small and tend to be concentrated in rural households toward the middle of the household income distribution.

Suggested Citation

  • Ricardo Arguello & Daniel Valderrama G. & Sandra Acero W., 2012. "Poverty Impacts of Agricultural Policy Adjustments in an Opening Economy: the Case of Colombia," Working Papers MPIA 2012-06, PEP-MPIA.
  • Handle: RePEc:lvl:mpiacr:2012-06
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    References listed on IDEAS

    as
    1. Luc Savard, 2003. "Poverty and Income Distribution in a CGE-Household Micro-Simulation Model: Top-Down/Bottom Up Approach," Cahiers de recherche 0343, CIRPEE.
    2. 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.
    3. Wayne Thirsk, 1974. "Factor Substitution in Colombian Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(1), pages 73-84.
    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 TN 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; Rural poverty; Computable General Equilibrium; Microsimulation; Colombia;

    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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