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GTAP Resource #7916

"Chapter 11A: Agricultural Domestic Support"
Authors: Puangchit, Pattawee, Angel Aguiar and Erwin Corong


Abstract
This section describes how agricultural domestic support is drawn from the OECD Producer Support Estimates (PSE) database and incorporated into the GTAP Data Base. The PSE measures the annual monetary value of gross transfers from consumers and taxpayers to agricultural producers at the farm gate that arise from policy measures, regardless of their form, objectives, or effects on production or income (OECD 2016).

Government policies affect domestic commodity prices through several channels. Border measures, such as tariffs, import quotas, and export subsidies, alter the wedge between domestic and world prices. Domestic measures, including administered prices, input subsidies, and public stockholding, can reinforce or offset those effects. Three principles define the PSE. First, transfers are attributed to agricultural producers regardless of policy intent or economic effect. Second, transfers are measured in gross terms, without deducting compliance costs. Third, transfers are measured at the farm gate, where support accrues to producers. These principles support comparability
across diverse policy instruments.

The latest available PSE release is retrieved from the 2025 OECD reports. This release
contains quantities and values for 72 products, which are mapped to 13 GTAP sectors. For single-commodity payments, the same principles as in GTAP 6 are followed, with payments allocated by factor to specific commodities. From GTAP 7 onward, the main implication of the revised OECD classification concerns group-transfer payments, which are allocated equi-proportionally


Resource Details () GTAP Keywords
Category: GTAP 12 Data Base Documentation
Status: Published
By/In: Center for Global Trade Analysis
Date: 2026
Version:
Created: McIntire, H. (6/4/2026)
Updated: McIntire, H. (6/4/2026)
Visits: 40
- GTAP Data Base and extensions


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