Grated cheese: Joint production and dairy disaggregation in computable general equilibrium

Angus Charteris and Niven Winchester

No 331701, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: We consider joint production and disaggregation in the dairy sector by specifying a disaggregation routine that nests a standard Global Trade Analysis Project (GTAP) model and a model built on a SplitCom disaggregation as special cases. We show that disaggregation and joint production can have a large influence on simulation results. In a detailed application, we consider the removal of US tariffs on New Zealand dairy products. Disaggregation of the dairy sector results in a welfare gain nearly twice as large as when dairy products are included in a single sector. Our preferred aggregation and production specification for dairy commodities generates results that differ from those produced by standard approaches.

Keywords: Production Economics; Livestock Production/Industries (search for similar items in EconPapers)
Pages: 17
Date: 2008
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