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Agricultural Price Policy in General Equilibrium Models: Results and Comparisons

Alain de Janvry () and Elisabeth Sadoulet ()

American Journal of Agricultural Economics, 1987, vol. 69, issue 2, 230-246

Abstract: A number of alternative policies toward agricultural prices, food subsidies, and intersectoral allocation of investment are analyzed with computable general equilibrium models for six countries. The models generally allow us to trace the intersectoral and intertemporal growth effects of these policies as well as their income distribution effects across social groups. The results obtained are shown to be eventually quite different from those derived from partial equilibrium and multimarket approaches. Sensitivity analysis to alternative specifications of the mechanism of wage determination shows that the real income effects of price policies are critically dependent upon the particular theory of wage determination used.

Date: 1987
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