The book provides a hands-on introduction to computable general equilibrium (CGE) models, written at an accessible, undergraduate level.

This textbook integrates three related fields in economics, namely agricultural/forestry economics, environmental economics, and international trade, by foregrounding cost-benefit analysis as a significant policy tool. Exploring how welfare measures can be used in the analysis of agricultural, trade, and other economic policies, Applied Welfare Economics, Trade, and Agricultural Policy Analysis fills a gap in the literature on agricultural policy analysis by explaining the economic efficiency improvements and income transfers of various agricultural policy reforms in the United States, Canada, and the European Union. G. Cornelis van Kooten addresses methods of identifying and measuring economic surpluses (costs and benefits), the precautionary principle, identification of an appropriate discount rate, the importance of non-market values, and the role of agriculture in trade negotiations and climate change. Applied Welfare Economics, Trade, and Agricultural Policy Analysis draws on new research, brings attention to the existing literature, and includes review questions that challenge programming skills. The techniques developed in this text can be applied to the development and reform of agricultural policies in various regions in response to trade negotiations and many other situations involving government policy.

The purpose of this manual is to contribute to and facilitate the use of computable general equilibrium (CGE) models in the analysis of issues related to food policy in developing countries. The volume includes a detailed presentation of a static “standard” CGE model and its required database and incorporates features of particular importance in developing countries. The manual discusses the implementation of the model in GAMS and is accompanied by a CD-ROM that includes the GAMS software (free demo system), the GAMS input files for the model, sample databases, simulations, solution reports, and a social accounting matrix (SAM) aggregation program. Although the volume provides a standardized framework for analysis, the analyst is not forced to make “one-size-fits-all” assumptions. The GAMS code is written to give the analyst considerable flexibility in model specification.

Many governments of developing countries burdened with international debt are under ever-increasing pressure to use their scarce economic resources wisely. Faced with slow progress in alleviating poverty and stimulating economic growth, they especially need to end wasteful subsidies and revise inefficient tax policies. This book will help staff members of government planning agencies and ministries of finance and agriculture to analyze the effects of government policies on the production, consumption, and export of agricultural commodities. The analytical techniques that Isabelle Tsakok demonstrates in this book are the essential first step in reforming agricultural price policy to bring about a more efficient allocation of resources. After mastering the techniques of single-market, partial-equilibrium analysis, which are the book's focus, policy analysts can use the techniques to identify when more sophisticated methods, such as multi-market analysis and computable general-equilibrium models, are needed to determine what agricultural price policies are "right." Tsakok begins with graphical analysis and data requirements in order to build intuitive understanding, and progresses through steadily more complex techniques, demonstrating—step by step—the calculation of domestic resource costs, effective rates of protection, and related coefficients of protection. Providing a wide range of numerical real-world examples to illustrate the practical application of the partial-equilibrium framework, Agricultural Price Policy is an invaluable reference manual and teaching tool.

Trade flows and trade policies need to be properly quantified to describe, compare, or follow the evolution of policies between sectors or countries or over time. This is essential to ensure that policy choices are made with an appropriate knowledge of the real conditions. This practical guide introduces the main techniques of trade and trade policy data analysis. It shows how to develop the main indexes used to analyze trade flows, tariff structures, and non-tariff measures. It presents the databases needed to construct these indexes as well as the challenges faced in collecting and processing these data, such as measurement errors or aggregation bias. Written by experts with practical experience in the field, A Practical Guide to Trade Policy Analysis has been developed to contribute to enhance developing countries' capacity to analyze and implement trade policy. It offers a hands-on introduction on how to estimate the distributional effects of trade policies on welfare, in particular on inequality and poverty. The guide is aimed at government experts engaged in trade negotiations, as well as students and researchers involved in trade-related study or research. An accompanying DVD contains data sets and program command files required for the exercises. Copublished by the WTO and the United Nations Conference on Trade and Development