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Agricultural Policy Impact Analysis with Multi-Market Models: A Primer

Author

Listed:
  • André Croppenstedt

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Lorenzo Giovanni Bellú

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Fabrizio Bresciani

    (The World Bank, Manila, The Philippines)

  • Stefania DiGiuseppe

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

Abstract
Many governments intervene directly in agricultural product, in particular food, markets. A quantitative assessment of the impact of the policy changes on the desired objectives is important as it helps inform and shape the policy debate on the reform alternatives and increases transparency of government policy. This paper reviews the literature on multi-market models which offer more accurate ex ante impact analysis than single-market models by including potentially important indirect effects. While fairly complex and requiring large amounts of data multi-market models are however much simpler than computable general equilibrium models. They are typically applied at the sector level and have proven quite popular in particular in agricultural policy reform impact analysis. While more recent work has emphasized the poverty reduction and income distribution objective the models can generate a range of information relevant to policy makers.

Suggested Citation

  • André Croppenstedt & Lorenzo Giovanni Bellú & Fabrizio Bresciani & Stefania DiGiuseppe, 2007. "Agricultural Policy Impact Analysis with Multi-Market Models: A Primer," Working Papers 07-26, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    • Handle: RePEc:fao:wpaper:0726
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    References listed on IDEAS

    as
    1. Sayaka, Bambang & Masjidin Siregar, Sumaryanto & Croppenstedt, André & DiGiuseppe, Stefania, 2007. "An assessment of the impact of higher yields for maize, soybean and cassava in Indonesia: A multi-market model approach," ESA Working Papers 289035, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    2. Gamal M. Siam & André Croppenstedt, 2007. "An Assessment of the Impact of Wheat Market Liberalization in Egypt; A Multi-Market Model Approach," Working Papers 07-15, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    3. Srinivasan, P. V. & Jha, Shikha, 2001. "Liberalized trade and domestic price stability. The case of rice and wheat in India," Journal of Development Economics, Elsevier, vol. 65(2), pages 417-441, August.
    4. Nicholas Minot & Francesco Goletti, 1998. "Export Liberalization and Household Welfare: The Case of Rice in Vietnam," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(4), pages 738-749.
    5. Braverman, Avishay & Hammer, Jeffrey S & Gron, Anne, 1987. "Multimarket Analysis of Agricultural Price Policies in an Operational Context: The Case of Cyprus," The World Bank Economic Review, World Bank, vol. 1(2), pages 337-356, January.
    6. Paul Dorosh & Carlo del Ninno & David E. Sahn, 1995. "Poverty alleviation in Mozambique: a multi‐market analysis of the role of food aid," Agricultural Economics, International Association of Agricultural Economists, vol. 13(2), pages 89-99, November.
    7. Lau, Lawrence J. & Yotopoulos, Pan A. & Chou, Erwin C. & Lin, Wuu-Long, 1981. "The microeconomics of distribution: A simulation of the farm economy," Journal of Policy Modeling, Elsevier, vol. 3(2), pages 175-206, May.
    8. Sayaka, Bambang & Masjidin Siregar, Sumaryanto & Croppenstedt, André & DiGiuseppe, Stefania, 2007. "An assessment of the impact of rice tariff policy in Indonesia: A multi-market model approach," ESA Working Papers 289041, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    9. Dorosh, Paul A. & Haggblade, Steven, 1997. "Shifting sands: The changing case for monetizing project food aid in Bangladesh," World Development, Elsevier, vol. 25(12), pages 2093-2104, December.
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    11. Aline Coudouel & Stefano Paternostro, 2005. "Analyzing the Distributional Impact of Reforms : A Practioner's Guide to Trade, Monetary and Exchange Rate Policy, Utility Provision, Agricultural Markets, Land Policy and Education, Volume 1," World Bank Publications - Books, The World Bank Group, number 7251.
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    Cited by:

    1. Sabirova, A. I. & Nizamutdinov, M. M. & Safiullin, A. R. & Kharisova, F. I., 2019. "The impact of competition on regional food security (the case of the milk and dairy market in the Republic of Tatarstan)," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 5(3), pages 137-143.
    2. Nin-Pratt, Alejandro & Johnson, Michael & Magalhaes, Eduardo & Diao, Xinshen & You, Liang & Chamberlin, Jordan, 2009. "Priorities for realizing the potential to increase agricultural productivity and growth in Western and Central Africa:," IFPRI discussion papers 876, International Food Policy Research Institute (IFPRI).
    3. Roberto Ponce & María Blanco & Carlo Giupponi, 2014. "Climate Change, Water Scarcity in Agriculture and the Country-Level Economic Impacts. A Multimarket Analysis," Serie Working Papers 02, Universidad del Desarrollo, School of Business and Economics, revised Nov 2014.
    4. Haggblade, Steven & Me-Nsope, Nathalie M. & Staatz, John M., 2017. "Food security implications of staple food substitution in Sahelian West Africa," Food Policy, Elsevier, vol. 71(C), pages 27-38.
    5. Briones, Roehlano M. & David, Cristina C. & Inocencio, Arlene B. & Intal, Ponciano Jr. S. & Geron, Maria Piedad S. & Ballesteros, Marife M., 2012. "Monitoring and Evaluation of Agricultural Policy Indicators," Discussion Papers DP 2012-26, Philippine Institute for Development Studies.
    6. Ulimwengu, John M. & Ramadan, Racha, 2009. "How does food price increase affect Ugandan households?: An augmented multimarket approach," IFPRI discussion papers 884, International Food Policy Research Institute (IFPRI).

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    More about this item

    Keywords

    Multi-market models; agricultural policy impact analysis.;

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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