Conceptual Challenges for the Integration of Agricultural Sector and General Equilibrium Models: the databases of CAPRI and GTAP

Marc Mueller

No 331937, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: When comparing recent projects on the integration of CAPRI and GTAP (Global Trade Analysis Project, Hertel 1997) modelling systems, broadly three conceptual approaches may be distinguished: First, the sequential implementation of scenarios, where one model`s outcome serves as input for subsequent model runs (Scenar2020, European Commission 2006) without paying systematic attention to mutual compatibility in overlapping result areas. Second, the systematic combined application such as developed within the SEAMLESS project (Jansson et al. 2009) or by Britz & Hertel 2009 and discussed in last two papers of the session. And third, the direct combination of CAPRI and economy-wide data from EuroStat to generate a database compatible with GTAP, but with a higher degree of detail for the agricultural sector (AgroSAM Project, Mueller et al 2009). The latter project revealed some profound structural deviations between CAPRI and GTAP databases, originating mainly from the underlying statistics. Among the most prominent deviations are the treatment of nonmarketed outputs, the classification of agricultural and processed commodities, the relation between outputs and producing sectors, domestic price transformation processes, and the accounting for indirect taxes. This paper summarizes the main findings from the AgroSAM project. It starts with a description of the CAPRI database and European “Economic Accounts for Agriculture” (EAA, EuroStat 1997), and the. The link to economy-wide Supply- and Use-Tables within the “European System of National Accounts” (ESA) is established by transforming the CAPRI data into agricultural accounting matrices in ESA format. This paper concludes with an outline of the implications of the transformations from original CAPRI data to GTAP-IOTs. It is argued that a clear understanding of the conceptual differences between the respective databases is a prerequisite for the integration of both modelling systems.

Keywords: Research Methods/Statistical Methods; International Relations/Trade (search for similar items in EconPapers)
Pages: 30
Date: 2010
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