Discussion Paper

No. 2016-10 | February 29, 2016
An Equilibrium Displacement Approach to Analyzing the Effects of Tariff Reduction on Farmers’ Profits: The Korea–Chile FTA’s Effects on Korean Grape Producers

Abstract

The present study develops an equilibrium displacement model (EDM) to evaluate the impacts of a free trade agreement (FTA) on the profits of individual farmers. The parameters representing the share of profit within revenue and the elasticity of cost with respect to quantity in the cost function play key roles in assessing the change in individual farmers’ profit. The application of the developed EDM to assess the impacts of the Korea–Chile FTA indicates that this FTA has little impact on the Korean grape market and grape producers in Korea.

Data Set

JEL Classification:

F13, F14, Q17

Assessment

  • Downloads: 1122

Links

Cite As

Byeong-il Ahn and Jeong-bin Im (2016). An Equilibrium Displacement Approach to Analyzing the Effects of Tariff Reduction on Farmers’ Profits: The Korea–Chile FTA’s Effects on Korean Grape Producers. Economics Discussion Papers, No 2016-10, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2016-10


Comments and Questions


Anonymous - Referee Report 1
April 13, 2016 - 08:45

see attached file