Dairy disaggregation and joint production in an economy-wide model

Winchester, Niven; Charteris, Angus

Dairy disaggregation and joint production in an economy-wide model

Charteris, Angus; Winchester, Niven

Cite this item: Charteris, A., & Winchester, N. (2008). Dairy disaggregation and joint production in an economy-wide model (Economics Discussion Papers Series No. 810). Department of Economics, University of Otago. Retrieved from http://hdl.handle.net/10523/1077

Permanent link to OUR Archive version: http://hdl.handle.net/10523/1077

Date: 2008-11-01

Publisher: Department of Economics, University of Otago

Pages: 28

Series: Economics Discussion Papers Series

Series number: 810

Keywords: Disaggregation; joint production; trade liberalisation

Research Type: Discussion Paper

Abstract:

We examine the impact of dairy disaggregation and joint production on trade liberalisation outcomes in an economy-wide model. Depending on parameterisation, our model includes either (a) a single dairy commodity, (b) several dairy commodities without joint production, or (c) several dairy commodities with joint production. In a numerical application, we consider the removal of US tariffs on dairy exports from New Zealand (the world’s largest dairy exporter). We show that failing to account for joint production when dairy commodities are disaggregated leads to misleading results. Our preferred dairy production function differs from those used in other

applied trade models.

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