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Dairy disaggregation and joint production in an economy-wide model

Angus Charteris () and Niven Winchester
Additional contact information
Angus Charteris: Ministry of Foreign Affairs and Trade, Wellington, New Zealand

No 810, Working Papers from University of Otago, Department of Economics

Abstract: We examine the impact of dairy disaggregation and joint production on trade liberalisation outcomes in an economy-wide model. Depending on parameterisation, our model includes either (a) a single dairy commodity, (b) several dairy commodities without joint production, or (c) several dairy commodities with joint production. In a numerical application, we consider the removal of US tariffs on dairy exports from New Zealand (the world's largest dairy exporter). We show that failing to account for joint production when dairy commodities are disaggregated leads to misleading results. Our preferred dairy production function differs from those used in other applied trade models.

Keywords: Disaggregation; joint production; trade liberalisation (search for similar items in EconPapers)
JEL-codes: D58 F15 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2008-11, Revised 2008-11
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http://www.otago.ac.nz/economics/research/otago077114.pdf First version, 2008 (application/pdf)

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Journal Article: Dairy disaggregation and joint production in an economy-wide model (2010) Downloads
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