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A New Representation of Agricultural Production Technology in GTAP

Author

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  • Huang, Hsin
  • van Tongeren, Frank
  • Dewbre, Joe Dewbre, Joe
  • van Meijl, Hans

Abstract

This paper presents preliminary findings of an analysis using a version of the Global Trade Analysis Project (GTAP) model that has been modified by the OECD Secretariat to incorporate key features of the OECD’s Policy Evaluation Model (PEM). The most recent version of the GTAP1 model is taken as the starting point from which refinements to the agricultural supply side are added. First the production technology has been significantly improved to include a new land allocation system developed in the most recent version of the PEM. Second, a more realistic production technology is introduced that models substitution between farm-owned and purchased inputs. These modifications are crucial to fully exploit the information in the PSE database. Third, factors of production are segmented between agricultural and non-agricultural uses. Finally, to ensure consistency with the PEM, the revised model has been validated by calculating the relative impact of various agricultural policies.

Suggested Citation

  • Huang, Hsin & van Tongeren, Frank & Dewbre, Joe Dewbre, Joe & van Meijl, Hans, 2004. "A New Representation of Agricultural Production Technology in GTAP," Conference papers 330233, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:330233
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    File URL: https://ageconsearch.umn.edu/record/330233/files/1758_Huang.pdf
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    References listed on IDEAS

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