Modeling Policy Reform in the US Wheat and Feed Grain Sectors

  • Richard E. Just
  • Gordon C. Rausser
  • David Zilberman

Abstract

A major objective of the GATT negotiation is an international agreement on permitted domestic agricultural policies referred to as green light policies (e.g., environmental and decoupled support policies) to replace nonpermitted or red light policies (e.g., trade distortion subsidies). To be implementable, these policies must improve the efficiency of resource allocation while being politically sustainable. Economists are challenged to develop quantitative estimates of the impacts of alternative policy proposals that serve both of these goals. Such impacts must be quantified not only for efficiency and distributional effects but also for short- and long-term effects over time. A conceptual and empirical modeling framework that meets this challenge is presented in this chapter. Specifically, the model is applied to assess the impacts of three alternative policy reform scenarios for the US feed grain, soybean, livestock, and wheat sectors.

Keywords

Corn Covariance Income Marketing Assure 

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Copyright information

© Springer-Verlag Berlin Heidelberg 1995

Authors and Affiliations

  • Richard E. Just
  • Gordon C. Rausser
  • David Zilberman

There are no affiliations available

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