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Feeding the World via Transfer Payments – A General Equilibrium Approach

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  • Lips, Markus

Abstract

In order to finance worldwide adequate nourishment a general income tax to OECD countries is introduced. The resulting funds are transferred to regions with an insufficient calorie supply to increase their food budgets. This transfer mechanism as well as information about the available daily calories per person are introduced in the general equilibrium model of the Global Trade Analysis Project (GTAP). The resulting tax rate is 0.83 percent of the OECD countries’ income, respectively a required transfer payment of 167 billion USD. With the money allocated the receiver countries increase their domestic production as well as augment their food imports. This in turn affects agriculture in the OECD countries by slightly promoting production.

Suggested Citation

  • Lips, Markus, 2003. "Feeding the World via Transfer Payments – A General Equilibrium Approach," Conference papers 331103, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331103
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