Endogenous Policy and Supply Management in a Post-GATT World

Julian Alston and John Spriggs

Canadian Journal of Economics, 1998, vol. 31, issue 1, 220-239

Abstract: Previous studies of the effects of agricultural trade policy reform have treated internal policies for supply-managed commodities as exogenous. In the authors' model, however, quotas on imports, are chosen jointly with domestic production quotas to balance total welfare and its distribution among producers, consumers, importers, and taxpayers. GATT and NAFTA regulations impose minimum import access requirements on supply-managed commodities. They show the unintended consequences of these regulations, which arise from the induced adjustment of domestic quota policies, using Canadian supply management as an example.

Date: 1998
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