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Regional Impacts Of Farm Programs: A Top-Down CGE Analysis

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  • G. Andrew Bernat, Jr.

    (U.S. Department of Agriculture, Washington D.C.)

  • Kenneth Hanson

    (U.S. Department of Agriculture, Washington D.C.)

Abstract

This paper analyzes the regional impacts of changing a major component of national farm policy. Using a national-level computable general equilibrium (CGE), we estimate the national impacts of removing deficiency payments, one of the primary components of U.S. farm programs. We then use two top-down methods of regionalization to analyze the regional impacts. While both top-down methods are easy to implement, the analysis demonstrates the importance of accounting for the presence of local linkages in assessing regional impacts of policy changes. The analysis indicates that elimination of the deficiency payment· program would result in efficiency gains at the national level, but because of the reallocation of resources, nonmetropolitan regions would lose and metropolitan regions would gain.

Suggested Citation

  • G. Andrew Bernat, Jr. & Kenneth Hanson, 1995. "Regional Impacts Of Farm Programs: A Top-Down CGE Analysis," The Review of Regional Studies, Southern Regional Science Association, vol. 25(3), pages 331-350, Winter.
    • Handle: RePEc:rre:publsh:v:25:y:1995:i:3:p:331-350
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    References listed on IDEAS

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    1. Robinson, Sherman & Kilkenny, Maureen & Hanson, Kenneth, 1990. "The USDA/ERS Computable General Equilibrium (CGE) Model of the United States," Staff Reports 278341, United States Department of Agriculture, Economic Research Service.
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    Cited by:

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    2. Natalia Gennadyevna Zakharchenko & Olga Valeryevna Dyomina, 2015. "Modelling Energy - Economy Interactions: The Far East Experience," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 1, pages 62-90.
    3. Mark D. Partridge & Dan S. Rickman, 1998. "Regional Computable General Equilibrium Modeling: A Survey and Critical Appraisal," International Regional Science Review, , vol. 21(3), pages 205-248, December.
    4. Weerasooriya, Senal A. & Reimer, Jeffrey J., 2016. "Effects of the Supplemental Nutrition Assistance Program on Rural and Urban Areas in Oregon," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235751, Agricultural and Applied Economics Association.
    5. Kwok, Yun-Kwong, 2004. "Global factor trade with differentiated factor prices and factor intensities," Conference papers 331173, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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