A Spatial Equilibrium Model of the EC Feed Grain Sector

Ludo Peeters

European Review of Agricultural Economics, 1990, vol. 17, issue 4, 365-86

Abstract: In this paper, a multicommodity price-endogenous spatial equilibrium model of the EC-9 feed-grain sector is presented. Nonintegrable (asymmetric) feed-grain demand functions are estimated for each EC member country using a pseudo data approach based on a set of representative least-cost feedmix models. The price and quantity impacts of three "harmonizing" EC policies are investigated within a comparative statics framework: the abolition of monetary compensatory amounts, a 10 percent cut in EC grain support prices, and a 10 percent tax on the use of major imported "cereal substitutes." Copyright 1990 by Oxford University Press.

Date: 1990
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