The authors review several studies of the aggregate agricultural supply response. Using both economic and econometric reasons, they argue that time series estimation typically generates a downward-biased estimate of the response to a credible reform. Even though time series estimates can provide...

India's government procures agricultural products such as rice, wheat, and sugar at below-market prices and sells them in both urban and rural ration shops. The rest of such crops is sold in the open market. This creates a two-tier price system for consumers and producers. Many (including...

Based on an economy-wide perspective, this paper begins with a discussion of the bias against exports and agriculture that characterized the economic literature and the development strategies in many developing countries after World War II. This is followed by an analysis of how the...

How firms react to a given shock may depend on the degree to which rivals are present and on whether potentially viable entrants to that market exist. The authors try to measure these effects internationally by examining the price behavior of the United States in Brazil's market when MERCOSUR...

Based on static analysis, a number of studies argue that forming a regional trade agreement is more likely to raise welfare if member countries are"natural trading partners,"while other studies claim that the opposite is true. Schiff and Wang look at the argument from a dynamic viewpoint by...

The literature on regional integration agreements (RIAs) is vast and deals with political, economic, and political economy issues. The literature on the economics of RIAs deals mostly with static effects, and concludes that these effects are, in general, ambiguous. So far there has been no...

The authors are particularly interested in evaluating the concern that efficiency or policy-induced changes in the supply of exports of primary commodities, such as cocoa, coffee, and tea, may lead to such a large decline in the prices of those commodities that export revenues and incomes of the...

There has been a resurgence of preferential trade agreements (PTAs). This has led to renewed debate about how PTAs affect both welfare and the multilateral system. The author examines two ideas: the welfare impact of PTAs and the effect of structural and policy changes on PTAs. He asks how the...

Standard theory says that a country's welfare is unaffected by being excluded from a small regional trade agreement. But for most products,"small"countries and regional trade agreements do have some measure of market power. Such market power can arise if (1) supply is geographically concentrated;...

It has been argued that if several developing countries expand exports, they are likely to experience a decline in their terms of trade, export revenues, and real incomes. The general case for this export pessimism has lost much of its force, but remains very much alive for some specific...