Economics at your fingertips  

Assessing Model Assumptions in Trade Liberalization Modeling: An Application to SWOPSIM

Michael Herlihy, Stephen Haley and Brian G. Johnston

No 51134, Working Papers from International Agricultural Trade Research Consortium

Abstract: This report reviews research on the effectiveness of acreage reduction programs and describes the methodology developed for the Static World Policy Simulation (SWOPSIM) modeling framework to capture the effect of removing these programs. It also analyzes the results of several sensitivity tests of a SWOPSIM model used by the Economic Research Service to study the effects of agricultural trade liberalization. Assumptions concerning how U.S. acreage reduction programs are modeled significantly influence predictions as to how trade liberalization affects commodity prices, production, and trade. However, these assumptions do not significantly influence predictions of how trade liberalization affects producer welfare. In terms of trade liberalization analysis, more crucial are the assumptions regarding agricultural commodity supply elasticities and the degree to which U.S. agricultural policies are decoup1ed from production.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Pages: 41
Date: 1992
References: Add references at CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
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:

DOI: 10.22004/ag.econ.51134

Access Statistics for this paper

More papers in Working Papers from International Agricultural Trade Research Consortium Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().

Page updated 2023-03-26
Handle: RePEc:ags:iatrwp:51134