Analysing the Effects of a Pigs Production Quota within a Dynamic CGE Framework
Research output: Chapter in Book/Report/Conference proceeding › Article in proceedings › Research
Documents
- Full text
Final published version, 140 KB, PDF document
In this paper we address the issue of timing and announcement within a dynamic applied general equilibrium model of the Danish economy. Specifically we analyse the introduction of a quota on the production of pigs. Two scenarios are analysed, namely the introduction of a once-off quota without any previous announcement and secondly, an announced gradually phased in production quota. Our findings suggest that the adjustment path is smoother when the policy is announced compared with the one being implemented without warning. This is the result of investors anticipating correctly future adjustments in prices and rental rates when making their investment decisions. Hence, the capital stock starts to adjust from the start of the simulation. When the quota is implemented without warning investors adjusts fully when the quota is implemented. In the long run, however, we find that the alternative timing strategies lead to similar results.
Original language | English |
---|---|
Title of host publication | GTAP 2001 Conference Papers |
Number of pages | 20 |
Publisher | Center for Global Trade Analysis, Purdue University |
Publication date | 2001 |
Publication status | Published - 2001 |
Event | Annual Conference on Global Economic Analysis, Purdue University, USA - West Lafayette, IN, United States Duration: 27 Jun 2001 → 29 Jun 2001 Conference number: 4 |
Conference
Conference | Annual Conference on Global Economic Analysis, Purdue University, USA |
---|---|
Nummer | 4 |
Land | United States |
By | West Lafayette, IN |
Periode | 27/06/2001 → 29/06/2001 |
Number of downloads are based on statistics from Google Scholar and www.ku.dk
No data available
ID: 35164169