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Grated cheese: Joint production and dairy disaggregation in computable general equilibrium

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  • Charteris, Angus
  • Winchester, Niven

Abstract

We consider joint production and disaggregation in the dairy sector by specifying a disaggregation routine that nests a standard Global Trade Analysis Project (GTAP) model and a model built on a SplitCom disaggregation as special cases. We show that disaggregation and joint production can have a large influence on simulation results. In a detailed application, we consider the removal of US tariffs on New Zealand dairy products. Disaggregation of the dairy sector results in a welfare gain nearly twice as large as when dairy products are included in a single sector. Our preferred aggregation and production specification for dairy commodities generates results that differ from those produced by standard approaches.

Suggested Citation

  • Charteris, Angus & Winchester, Niven, 2008. "Grated cheese: Joint production and dairy disaggregation in computable general equilibrium," Conference papers 331701, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331701
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