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Agricultural Price Policy in General Equilibrium Models: Results and Comparisons
Author(s) -
Janvry Alain,
Sadoulet Elisabeth
Publication year - 1987
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242273
Subject(s) - economics , subsidy , computable general equilibrium , wage , general equilibrium theory , agriculture , investment (military) , distribution (mathematics) , microeconomics , partial equilibrium , econometrics , macroeconomics , labour economics , market economy , ecology , mathematical analysis , mathematics , politics , political science , law , biology
A number of alternative policies toward agricultural prices, food subsidies, and intersectoral allocation of investment are analyzed with computable general equilibrium models for six countries. The models generally allow us to trace the intersectoral and intertemporal growth effects of these policies as well as their income distribution effects across social groups. The results obtained are shown to be eventually quite different from those derived from partial equilibrium and multimarket approaches. Sensitivity analysis to alternative specifications of the mechanism of wage determination shows that the real income effects of price policies are critically dependent upon the particular theory of wage determination used.