Dynamic modelling of agricultural policies: The role of expectation schemes

Fabienne Femenia and Alexandre Gohin

Economic Modelling, 2011, vol. 28, issue 4, 1950-1958

Abstract: The highly disputed effects of agricultural trade liberalisation are mostly simulated with static models. Our main objective in this paper is to evaluate the robustness of the static simulation results to the consistent modelling of dynamic behaviours and to the linked specification of price/return expectations. Focusing on the scenario of a complete trade liberalisation of arable crop markets by developed countries, we find that available static results are quite robust compared to dynamic specifications and to most expectation schemes. Endogenous market fluctuations due to expectation errors may appear following trade liberalisation. These fluctuations are nevertheless limited by the many feedback effects revealed by our general equilibrium framework.

Keywords: Agricultural; policy; Dynamics; Endogenous; fluctuations; Expectation; errors (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999311000952
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Dynamic modelling of agricultural policies: the role of expectation schemes (2012)
Working Paper: Dynamic modelling of agricultural policies: the role of expectation schemes (2011)
Working Paper: Dynamic modelling of agricultural policies: the role of expectation schemes (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:28:y:2011:i:4:p:1950-1958

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().