This paper presents a new model which incorporates features of developing country agriculture that may be critical in shaping the welfare outcomes of alternative agricultural policies. The model features heterogeneous households linked through markets in a rural economy-wide structure, with...

This report examines the different channels through which trade openness (and reforms to achieve it) can affect a country’s food security. The overall conclusion is that trade openness has a positive net impact on food security, although specific constituencies, including some poor households,...

Recent studies into price transmission have recognized the important role played by transport and transaction costs. Threshold models are one approach to accommodate such costs. We develop a generalized Threshold Error Correction Model to test for the presence and form of threshold behavior in...

In June 2005, OECD members met with senior government officials from Brazil to discuss Brazilian agricultural policies and future directions, as a part of a comprehensive agricultural policy review. Ongoing dialogue with Brazil on policy issues is important to fostering a better understanding of...

This paper examines the effects of trade and domestic agricultural policy reforms on the distribution of incomes in six developing countries: Brazil, China, India, Malawi, Mexico and South Africa. The aggregate results from a global trade model are fed into separate national models. The insights...

Recent studies into price transmission have recognized the important role played by transport and transaction costs. Threshold models are one approach to accommodate such costs. We develop a generalized Threshold Error Correction Model to test for the presence and form of threshold behavior in...

This paper presents the Development Policy Evaluation Model (DEVPEM), a new simulation model which captures four critical aspects of rural economies in developing countries: (1) the role of the household as both a producer and a consumer of food crops; (2) high transaction costs of participating...

This paper provides technical documentation of the Development Policy Evaluation Model (DEVPEM model). It contains a discussion of the theoretical building blocks of the model; an overview of the data sources used for the simulations; and explanations of how household groups are categorized and...

The purpose of the Development Policy Evaluation Model (DEVPEM) is to provide an appropriate modelling structure for analysing the welfare and distributional implications of alternative agricultural policies in developing countries. The aim of the model is to provide illustrative results that...