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GTAP Resource #3092

"OTDS Reductions in the GTAP Database/Model: What can be done and how? "
by Jensen, Hans Grinsted, Kirsten Boysen-Urban and Martina Brockmeier

The WTO introduced a new round of negotiations in 2000. So far, domestic support issues have only received minor attention in the modeling of the WTO negotiations. The main reason is the difference in domestic support programs, which can vary widely between countries. Hence, a country-specific coverage of domestic support data in the underlying data base and a country-specific modeling of domestic support would be required.The WTO domestic support incorporated into the GTAP database in the form of price wedges, is taken from the OECD’s PSE tables where no distinction is made between the different WTO types of domestic support (AMS, Blue box and Green box). This in itself makes it difficult to model a reduction OTDS which encompasses a total reduction in the sum of the final bound total AMS plus de minimis and blue box payments. Besides this overall reduction in domestic support, specific restrictions are also placed individually on the amount of support give as AMS, de minimis and blue box which complicates modeling WTO domestic support reductions in the GTAP database even further. Finally of course the WTO reductions in domestic support are reductions in bound levels of support which in many cases are higher than the actual support given in a country. The first goal of this paper is a review of the literature on the modeling of domestic support in CGE models. Secondly this study is aimed to extend the GTAP model with both a simple and more explicit approach of modeling domestic support based on the WTO proposal which entails detangling the domestic support found in the GTAP V7 database. The extended GTAP model is employed to run simulations on the WTO negotiation utilizing the proposal of December 2008.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Not published
Date: 2009
Created: Brockmeier, M. (4/15/2009)
Updated: Boysen-Urban, K. (1/7/2015)
Visits: 2,919
- Agricultural policies
- The GTAP Data Base and extensions

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