MEXAGMKTS : a model of crop and livestock markets in Mexico

The genesis of the model MEXAGMKTS was the perception that agricultural policies in Mexico (and many other countries) are often second-best responses to the negative side effects of broad macroeconomic and international trade policies. MEXAGMKTS was designed to allow analysis of the relationship between such agricultural policies and different macroeconomic and international trade regimes. MEXAGMKTS is part of a set of interlinked macroeconomic and sectoral models of Mexico and the United States (with enough specifications for the rest of the world to close the system). The authors discuss the historical context in which MEXAGMKTS was developed as well as its economic structure, estimates, and validation. They present a stand-alone, counterfactural application of a trade liberalization scenario for Mexico.