Novel Indicators of the Trade and Welfare Effects of Agricultural Distortions in OECD Countries

Croser, Johanna; Anderson, Kym

Novel Indicators of the Trade and Welfare Effects of Agricultural Distortions in OECD Countries

Autores

Descripción

Agricultural markets in OECD countries have long been highly distorted by government policies. Traditional weighted average aggregates of the price distortions involved, such as producer and consumer support estimates can be poor indicators of the trade restrictiveness and economic welfare losses associated with them, especially if a country's support estimates vary a lot across the product range. Certainly estimates of trade and welfare effects of price supports can be obtained from sector or economy-wide models using price elasticity estimates, but the results can be contentious if there is no consensus on what model specification and elasticity parameters to use. This paper shows that, if there is a willingness to accept simple assumptions about elasticities, it is possible to generate indicators of the welfare and trade restrictiveness of agricultural policies using no more than the price and quantity data needed to generate producer and consumer support estimates. These new indexes thus provide an attractive supplement to the current policy monitoring regime developed by the OECD Secretariat.

Palabras clave

ABSOLUTE VALUE, AGGREGATE TRADE, AGRICULTURAL COMMODITIES, AGRICULTURAL INCENTIVES, AGRICULTURAL MARKETS, AGRICULTURAL PRICE, AGRICULTURAL PRICES, AGRICULTURAL PRODUCTION, AGRICULTURAL PRODUCTS, AGRICULTURAL SUPPORT, AGRICULTURAL TRADE, AGRICULTURE, AVERAGE PRICE, AVERAGE TARIFF, BARLEY, BORDER PRICE, BORDER PROTECTION, COARSE GRAINS, COMMODITIES, COMMODITY, CONSUMER PRICE, CONSUMER PRICES, CONSUMERS, COTTON, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPMENT ECONOMICS, DIRECT PAYMENTS, DOMESTIC CONSUMPTION, DOMESTIC DEMAND, DOMESTIC DISTORTIONS, DOMESTIC PRICE, DOMESTIC PRODUCTION, ECONOMETRIC ESTIMATES, ECONOMIC DEVELOPMENT, ECONOMIC EFFECTS, ECONOMIC MODELS, ECONOMIC POLICY, ECONOMIC WELFARE, ELASTICITY ASSUMPTION, EQUILIBRIUM, EXCHANGE RATE, EXCHANGE RATES, EXPORT SUBSIDIES, EXPORT TAX EQUIVALENTS, EXPORT TAXES, FACTOR MARKETS, FAO, FARM, FARMERS, FARMING, FOOD PRODUCTS, FREE TRADE, GARLIC, GENERAL EQUILIBRIUM MODEL, GLOBAL MARKET, GLOBAL TRADE, GRAINS, IMPORT BARRIERS, IMPORT PROTECTION, IMPORT TARIFFS, INCOME, INCOMES, INDEX NUMBERS, INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE, INTERNATIONAL TRADE, INTERNATIONAL TRADE POLICY, LESS DEVELOPED COUNTRIES, MAIZE, MARKET INDEXES, MARKET PRICE, OILSEEDS, OPEN ECONOMY, OUTPUT, PEAS, PEPPER, POULTRY, PRICE CHANGE, PRICE CHANGES, PRICE DISTORTION, PRICE DISTORTIONS, PRICE ELASTICITY, PRICE ELASTICITY OF SUPPLY, PRICE SUPPORT, PRODUCER PRICE, PRODUCER PRICES, QUANTITATIVE RESTRICTIONS, RA, RAPESEED, RYE, SORGHUM, SOYBEAN, SUGAR, SUNFLOWER, TARIFF DATA, TAX, TAX RATE, TAXATION, TOBACCO, TRADE ASSOCIATION, TRADE COSTS, TRADE EFFECTS, TRADE POLICIES, TRADE POLICY, TRADE TAX, TRANSITION ECONOMIES, TRANSPARENCY, TROPICAL CROPS, VEGETABLES, VOLUME OF TRADE, WELFARE IMPACTS, WELFARE LOSS, WELFARE LOSSES, WHEAT, WTO