Modelling the Effects on Australia of Interventions in World Agricultural Trade

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Horridge, Mark ORCID: 0000-0002-1070-5763 and Pearce, David (1988) Modelling the Effects on Australia of Interventions in World Agricultural Trade. Working Paper. Centre of Policy Studies (CoPS).

Abstract

In this paper we desribe a general equilibrium model of the world economy, designed to simulate the effect of a liberalization of world food trade. Our model owes much to Tyers (1985) partial equilibrium model which covered trade between 30 countries in 7 agricultural commodities. It also displays several important differences. First, ours is a general equilibrium model. We argue that the general equilibrium approach makes key assumptions explicit, and can be used to restrict uncertain parameter values. Second, we have adopted a comparative static framework, and have expressed our equations in percentage change form. Third, we have updated and revised most of the data used by Tyers. Last, our methodology allows us to include the ORANI model of the Australian economy as an integral part of the world model. This allows a detailed picture of the effects of world food trade liberalization on Australia. At the same time the ORANI results are completely consistent with those yielded by the world model.

Additional Information

CoPS/IMPACT Working Paper Number OP-65

Item type Monograph (Working Paper)
URI https://vuir.vu.edu.au/id/eprint/29299
Official URL http://www.copsmodels.com/elecpapr/op-65.htm
ISBN 0642103208
Subjects Historical > FOR Classification > 1402 Applied Economics
Current > Division/Research > Centre of Policy Studies (CoPS)
Keywords C68; D58; E27; F13; F15; Q17; world food trade; comparative-static simulation; computable general equilibrium model; model linking
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