OECD Food, Agriculture and Fisheries Papers

ISSN :
1815-6797 (online)
DOI :
10.1787/18156797
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Selected studies on various food, agriculture and fisheries issues from the OECD Trade and Agriculture Directorate.

NB. No. 1 to No. 58 were released under the previous series title OECD Food, Agriculture and Fisheries Working Papers.

 

Modelling the Distributional Implications of Agricultural Policies in Developing Countries

The Development Policy Evaluation Model (DEVPEM) You or your institution have access to this content

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Author(s):
Jonathan Brooks, Mateusz Filipski, Erik Jonasson1, J. Edward Taylor2
Author Affiliations
  • 1: Lund University, Sweden

  • 2: University of California, Davis, United States

Publication Date
15 Nov 2011
Bibliographic information
No.:
50
Pages
56
DOI
10.1787/5kg26l5kjp22-en

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This paper presents the Development Policy Evaluation Model (DEVPEM), a new simulation model which captures four critical aspects of rural economies in developing countries: (1) the role of the household as both a producer and a consumer of food crops; (2) high transaction costs of participating in markets; (3) market linkages among heterogeneous rural producers and consumers; (4) the imperfect convertibility of land from one use to another. The results of simulations for six country models show that no untargeted agricultural policy intervention is pro-poor within the rural economy. While agricultural policy instruments are less efficient at raising rural incomes than direct payments, the degree of inefficiency of some market interventions, notably input subsidies, is not inevitably as high as observed in developed OECD countries.
Keywords:
household analysis, agricultural policy, welfare, general equilibrium