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GTAP Resources: Resource Display

GTAP Resource #2392

"Disaggregating the dairy sector in the GTAP database"
by Mraz, Marian and Alan Matthews


Abstract
Global models such as GTAP are built around regional SAM’s mutually interlinked by bilateral trade flows. Often the sectoral breakdown is insufficiently detailed to allow their use for industry-specific analysis. To conduct an in-depth analysis of agricultural policies it is desirable to start with the benchmark sectoral and product inter-linkages, disaggregated to a reasonable level. Dairy industry is a typical case where specific dairy products differ in terms of their pricing, border protection, administrative policies as well as in their production technologies. In this paper we describe the process of disaggregating the dairy sector composite account in the most recent GTAP database. The disaggregated database would then in turn be used to simulate the future EU dairy policy reforms. Disaggregating a sectoral account within the GTAP database requires additional information on the products’ sub-sectoral row and column totals, estimates of the different production technologies (cost shares) and value added components within each product sub-sector, as well as information on the different utilization of each product between intermediate use and various components of final demand for each region included in the database. The estimation process consists of two separate procedures applied to the estimation of the regional SAM’s and the bilateral trade flows matrices for all dairy commodities. All figures are initially estimated net of taxes / tariffs, which are then applied for all products in each region as taken from the dairy account in the GTAP database. At the second stage and subject to availability of the necessary data we recalibrate the database to reflect the agreement on the ad valorem equivalents of the specific tariffs for dairy product at WTO. All matrices are subsequently reconciled such that all zero profit and market clearance conditions are satisfied.


Resource Details (Export Citation) GTAP Keywords
Category: 2007 Conference Paper
Status: Published
By/In: Presented at the 10th Annual Conference on Global Economic Analysis, Purdue University, USA
Date: 2007
Version: Draft version 14 April 2007
Created: Mraz, M. (4/15/2007)
Updated: Batta, G. (4/16/2007)
Visits: 2,429
- Agricultural policies
- The GTAP Data Base and extensions


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