Different from many single-commodity partial equilibrium models, the Export Restrictions And import Tariffs Overall impacts (ERATO) model illustrates how a multi-market model can be used to analyze trade policy options in a context of a multi-product value chain. It can also be used to study different productivity shock or tax changes in a sectoral value chain. The ERATO model is a member of the MUlti Sectoral partial Equilibrium models (MUSE) developed for the AGRODEP Consortium.
As an illustration, we examine the impacts of trade, both on the export and import sides, restrictions imposed along three stages of the oilseed value chain. This application considers 11 regions: ten countries (Argentina, Brazil, Canada, China, European Union, India, Indonesia, Malaysia, Ukraine, and United States) and a rest-of-the-world aggregate are considered in the model, as they are the major producing, exporting, and importing countries of oilseed products; and four oilseeds. Nevertheless, the sectoral and regional coverage of the model can be modified easily in GAMS (the software of implementation) and the structure of input data is simplified using an Excel workbook.
The model can be easily adapted to other value chains, eg. Cotton, or expanded to include other regions or oilseeds (eg. peanuts).
The model has been developed in GAMS and the full documentation and user guide is available as AGRODEP-TN-03 "Documentation of the Export Restrictions And import Tariffs Overall impacts (ERATO) PE model" by Estrades, Gao and Laborde.
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