Agricultural Policy and Trade Reform

Potential Effects at Global, National and Household Levels

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Widespread agricultural policy reform would undoubtedly improve global economic welfare but would also produce a complex pattern of economic winners and losers. Using a combination of global, national and household level analysis, this study examines such distributional implications focusing especially on differences in policy effects among countries and between different sectoral and household constituencies within countries.  Case study summaries are included for Brazil, Italy, Malawi, Mexico, and the United States.

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This study explores the distributional implications for farm, rural and urban households of two policy reform scenarios. This summary is based on a more comprehensive analysis reported in Magnani and Perali (2005). Potential price, quantity and welfare effects were estimated using a general equilibrium model of the Italian economy described in detail in Finizia, Magnani and Perali (2004).

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