Hostname: page-component-78c5997874-ndw9j Total loading time: 0 Render date: 2024-10-31T23:06:16.872Z Has data issue: false hasContentIssue false
  • English
  • Français

Developing Policy Relevant Agrifood Models

Published online by Cambridge University Press:  28 April 2015

James I. Rude  and
Karl D. Meilke
James I. Rude
Affiliation:
Department of Agribusiness and Agricultural Economics, University of Manitoba, Winnipeg, MB
Karl D. Meilke
Affiliation:
Department of Agricultural Economics and Business, University of Guelph, Guelph, ON
Get access Rights & Permissions [Opens in a new window]

Abstract

The opportunities and challenges of incorporating accurate policy representations into institutional partial equilibrium commodity models were investigated. Six issues are raised: commodity space definition, vertical linkages, assessing market power, the changing nature of government support, trade policy, and data requirements. The importance of product attributes and different approaches to modeling product differentiation are considered. A case study of food safety is used to bring together the major issues. Although institutional commodity models still have a role to play, we advocate the use of smaller idiosyncratic models to address many of the relevant policy questions in a rapidly changing sector.

Keywords

commodity modelsfood safetypolicyproduct attributesF13Q17Q18
Type
Invited Paper Sessions
Information
Journal of Agricultural and Applied Economics , Volume 36 , Issue 2 , August 2004 , pp. 369 - 382
Copyright
Copyright © Southern Agricultural Economics Association 2004

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Adamowicz, W., Louviere, J., and Swait, J.. “Introduction to Attribute Based Stated Choice Methods.” Final Report to Resource Valuation Branch, Damage Assessment Center, U.S. Department of Commerce, Washington, DC, 1998.Google Scholar
Adams, G., Westhoff, P., Willott, E., and Young, R.. “Do ‘Decoupled’ Payments Affect US Crop Area? Preliminary Evidence from 1997–2000.” American Journal of Agricultural Economics 83(2001):1190–5.CrossRefGoogle Scholar
Amemiya, T. “Qualitative Response Models: A Survey.” Journal of Economic Literature 19(1981):1483–536.Google Scholar
Anderson, S., Palma, A. De, and Thisse, J.E. “Demand for Differentiated Products, Discrete Choice Models, and the Characteristics Approach.” Review of Economic Studies 56(1989):21–35.CrossRefGoogle Scholar
Antle, J.M. “No Such Thing as a Free Safe Lunch: The Cost of Food Safety Regulation in the Meat Industry.” American Journal of Agricultural Economics 82(2000):310–22.CrossRefGoogle Scholar
Antle, J.M. “Economic Analysis of Food Safety.” Handbook of Agricultural Economics: Market ing, Distribution, and Consumers. Gardner, B. and Rausser, G., eds. Amsterdam: Elsevier Science B.V., 2001.Google Scholar
Armington, P. “A Theory of Demand for Products Distinguished by Place of Production.” IMF Staff Papers (1969):159–76.Google Scholar
Carter, C.A., and Alston, J.M.. “Whither Armington Trade Models?” American Journal of Agricultural Economics 72(1990):455–67.Google Scholar
Caswell, J.A., Noelke, C.M., and Mojduszka, E.M.. “Unifying Two Frameworks for Analyzing Quality and Quality Assurance for Food Products.” Global Food and Consumer Demand for Quality. Krissoff, B., Bohman, M., and Caswell, J., eds. New York: Kluwer Academic/Plenum Publishers, 2002.Google Scholar
Chamberlin, E.H.The Theory of Monopolistic Competition. Cambridge, MA: Harvard University Press, 1933.Google Scholar
Choi, E.K., and Jensen, H.H.. “Modeling the Effect of Risk on Food Demand and the Implications for Regulation.” Economics of Food Safety. Caswell, J., ed. New York: Elsevier Science, 1991.Google Scholar
Dixit, A.K., and Stiglitz, J.E.. “Monopolistic Competition and Optimum Product Diversity. American Economic Review 67(1979):297–308.Google Scholar
Floyd, J.E. “The Effects of Farm Price Supports on the Return to Land and Labor in Agriculture.” Journal of Political Economy 73(1965):148–58.CrossRefGoogle Scholar
Fox, J.A., Shogren, J.F., Hayes, D.J., and Kliebenstein, J.B.. “Experimental Auctions to Measure Willingness to Pay for Food Safety.” Valuing Food Safety and Nutrition. Boulder: Westview Press, 1995.Google Scholar
Falconi, C., and Roe, T.. “A Model of Demand and Supply of Health Effects of Food Substances.” Economics of Food Safety. Caswell, J., ed. New York: Elsevier Science, 1991.Google Scholar
Gardner, B.L. “The Farm Retail Price Spread in a Competitive Food Industry.” American Journal of Agricultural Economics 57(1975):399–409.CrossRefGoogle Scholar
Gehlhar, M., and Coyle, W.. “Global Food Consumption and Impacts on Trade Patterns.” Changing Structure of Global Food Consumption and Trade. Regmi, Anita, ed. U.S. Department of Agriculture, Economic Research Service, Agriculture and Trade Report WRS-01-1, Washington, DC: U.S. Department of Agriculture, 2001.Google Scholar
Grant, J., and Meilke, K.D.. “Import Safeguards: Protectionist Measures or a Liberalization Strategy?” Paper prepared for the International Agricultural Trade Research Consortium annual meeting, San Antonio, TX, December 14-16, 2003.Google Scholar
Griliches, Z., ed. Price Indexes and Quality Change. Cambridge, MA: Harvard University Press, 1971.CrossRefGoogle Scholar
Henneberry, S.R., Piewthongngam, K., and Qiang, H.. “Consumer Food Safety Concerns and Fresh Produce Consumption.” Journal of Agricultural and Resource Economics 24(1999):98–113.Google Scholar
Hoffman, A. “Imperfect Competition in Computable General Equilibrium Models: A Primer.” Economic Modeling 20(2002):119–39.CrossRefGoogle Scholar
Holloway, G. “Safety and Quality Regulations and Stage of Distribution.” American Journal of Agricultural Economics 78(1996):1254–60.CrossRefGoogle Scholar
Holloway, G. “The Farm-Retail Price Spread in an Imperfectly Competitive Food Industry.” American Journal of Agricultural Economics 73(1991):979–89.CrossRefGoogle Scholar
Hotelling, H. “Stability in Competition.” Economic Journal 39(1929):41–57.CrossRefGoogle Scholar
Houthakker, H.S. “Compensated Changes in Quantities and Qualities Consumed.” Review of Economic Studies 19(1952):155–64.CrossRefGoogle Scholar
James, J., and Alston, J.. “Taxes and Quality: A Market Level Analysis.” The Australian Journal of Agricultural and Resource Economics 46(2002):414–45.CrossRefGoogle Scholar
Kolstad, C.D., Ulen, T.S., and Johnson, G.V.. “Ex Post Liability for Harm Versus Ex Ante Safety Regulation: Substitutes or Complements?” American Economic Review 80(1990):888–901.Google Scholar
Lancaster, K.J. “A New Approach to Consumer Theory.” Journal of Political Economy 74(1966):132–56.CrossRefGoogle Scholar
Lancaster, K.J.. Variety, Equity, and Efficiency. New York: Columbia University Press, 1979.CrossRefGoogle Scholar
McDonald, J.M., and Crutchfield, S.. “Modeling the Costs of Food Safety Regulation.” American Journal of Agricultural Economics 78(1996):1285–90.CrossRefGoogle Scholar
Mangen, M.J., and Burrrell, A.M.. “Who Gains, Who Loses? Welfare Effects of Classical Swine Fever Epidemics in the Netherlands.” European Review of Agricultural Economics 30(2003):125–54.CrossRefGoogle Scholar
Maskus, K., Otsuki, T., and Wilson, J.. “An Empirical Framework for Analyzing Technical Regulations and Trade.” Quantifying the Impact of Technical Barriers to Trade: Can it be Done? Maskus, K. and Wilson, J., eds. Ann Arbor: The University of Michigan Press, 2001.CrossRefGoogle Scholar
Muth, R.F. “The Derived Demand Curve for a Productive Factor and the Industry Supply Curve.” Oxford Economic Papers 16(194):221–34.CrossRefGoogle Scholar
Nevo, A. “Measuring Market Power in the Ready to Eat Cereal Industry.” Econometrica 69(2001):307–42.CrossRefGoogle Scholar
Organization for Economic Co-operation and Development (OECD). Agricultural Policies in OECD Countries: Monitoring and Evaluation. Paris: OECD, 2003.Google Scholar
Organization for Economic Co-operation and Development (OECD). A Forward Looking Analysis of Export Subsidies in Agriculture. Paris: OECD, 2001.Google Scholar
Organization for Economic Co-operation and Development (OECD). An Analysis of Officially Supported Export Credits. Paris: OECD, 2000.Google Scholar
Paarlberg, P.L., and Lee, J.G.. “Import Restrictions in the Presence of a Health Risk.” American Journal of Agricultural Economics 80(1998):175–83.CrossRefGoogle Scholar
Roberts, T., Buzby, J.C, and Ollinger, M.. “Using Benefit and Cost Information to Evaluate Food Safety Regulation: HACCP for Meat and Poultry.” American Journal of Agricultural Economics 78(1996):1297–301.CrossRefGoogle Scholar
Rosen, S. “Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition.” Journal of Political Economy 82(1974):34–55.CrossRefGoogle Scholar
Sexton, R.J. “Industrialization and Consolidation in the US Food Sector: Implications for Competition and Welfare.” Agricultural Journal of Agricultural Economics 82(2000):1087–109.CrossRefGoogle Scholar
Sexton, R.J., Sheldon, I., McCorriston, S., and Wang, H.. “Analyzing Vertical Market Structure and Its Implications for Trade Liberalization and Market Access.” Paper prepared for the International Agricultural Trade Research Consortium annual meeting, San Antonio, TX, December 14-16, 2003.Google Scholar
Shin, S.Y., Kliebenstein, J.B., Hayes, D.J., and Shogren, J.E. “Consumer Willingness to Pay for Safer Food Products.” Journal of Food Safety 13(1992):51–9.CrossRefGoogle Scholar
Spence, M.E. “Product Selection, Fixed Costs, and Monopolistic Competition.” Review of Economic Studies 43(1976):217–36.CrossRefGoogle Scholar
Theil, H. “Qualities, Prices, and Budget Enquiries.” Review of Economic Studies 19(1952):129–47.CrossRefGoogle Scholar
Unnevehr, L., Gomez, M., and Garcia, P.. “The Incidence of Producer Welfare Losses from Food Safety Regulation in the Meat Industry.” Review of Agricultural Economics 20(1998):186–201.CrossRefGoogle Scholar
U.S. Department of Agriculture. Food and Agricultural Policy: Taking Stock for the New Century. Washington, DC: U.S. Department of Agriculture, 2001.Google Scholar
van Tongeren, F., van Meijl, H., and Surry, Y.. “Global Models Applied to Agricultural and Trade Policies: A Review and Assessment.” Agricultural Economics 26(2001):149–72.CrossRefGoogle Scholar