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Do Nonagricultural Distortions Justify the Protection of U.S. Agriculture?

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  • Beghin, John C.
  • Karp, Larry

Abstract

Optimal agricultural distortions are calculated, taking as given distortions in the nonagricultural sector. The calculations use a general equilibrium model and assume that the sole criterion is economic efficiency. For most agricultural commodities, existing distortions should be decreased; for cotton and oil-bearing crops, the existing tariff should be increased. Under these optimal distortions, the USA would become an importer of dairy products, poultry, and eggs. Imports of meat, fruit, and vegetables would increase, as would exports of feed grains. The USA would become a major exporter of food and beverage products.
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Suggested Citation

  • Beghin, John C. & Karp, Larry, 1989. "Do Nonagricultural Distortions Justify the Protection of U.S. Agriculture?," Staff General Research Papers Archive 1613, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:1613
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    References listed on IDEAS

    as
    1. Dixit, Avinash K & Newbery, David M G, 1985. "Setting the Price of Oil in a Distorted Economy," Economic Journal, Royal Economic Society, vol. 95(380a), pages 71-82, Supplemen.
    2. Adelman, Irma & Robinson, Sherman, 1986. "The Application of General Equilibrium Models to Analyze U.S. Agriculture," CUDARE Working Papers 198352, University of California, Berkeley, Department of Agricultural and Resource Economics.
    3. J. M. Finger & A. J. Yeats, 1976. "Effective Protection by Transportation Costs and Tariffs: A Comparison of Magnitudes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(1), pages 169-176.
    4. Adelman, Irma & Robinson, Sherman, 1986. "The application of general equilibrium models to analyze U.S. agriculture," CUDARE Working Paper Series 423, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
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