Agricultural Policy and Trade Reform : the Impact on World Commodity Markets.

The governments of most developed, and many developing, countries impose border measurestariffs, tariff rate quotas and export subsidiesto boost the domestic market prices of agricultural commodities. In some OECD countries, governments also provide financial support to their agricultural sector through other means, as well. These interventions typically distort the allocation of resources, leading to sub-optimal production and consumption decisions. Using a partial-equilibrium agricultural commodity model with rich policy detail, this study examines the market impacts of agricultural policy.  Read more...