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Endogenous Policy and Supply Management in a Post-GATT World

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  • Julian M. Alston
  • John Spriggs

Abstract

Previous studies of the effects of agricultural trade policy reform have treated internal policies for supply-managed commodities as exogenous. In the authors' model, however, quotas on imports, are chosen jointly with domestic production quotas to balance total welfare and its distribution among producers, consumers, importers, and taxpayers. GATT and NAFTA regulations impose minimum import access requirements on supply-managed commodities. They show the unintended consequences of these regulations, which arise from the induced adjustment of domestic quota policies, using Canadian supply management as an example.

Suggested Citation

  • Julian M. Alston & John Spriggs, 1998. "Endogenous Policy and Supply Management in a Post-GATT World," Canadian Journal of Economics, Canadian Economics Association, vol. 31(1), pages 220-239, February.
    • Handle: RePEc:cje:issued:v:31:y:1998:i:1:p:220-239
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    Cited by:

    1. Larue, Bruno & Gervais, Jean-Philippe & Pouliot, Sebastien, 2007. "Should tariff-rate quotas mimic quotas?: Implications for trade liberalization under a supply management policy," The North American Journal of Economics and Finance, Elsevier, vol. 18(3), pages 247-261, December.
    2. David S. Bullock & Klaus Salhofer & Jukka Kola, 1999. "The Normative Analysis of Agricultural Policy: A General Framework and Review," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 512-535, September.

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