Anderson, Kym2014-09-022014-09-022010-01https://hdl.handle.net/10986/19952A study of distortions to agricultural incentives in 18 developing countries during 1960-84, by Krueger, Schiff and Valdes (1988; 1991), found that policies in most of those developing countries were directly or indirectly harming their farmers. Since the mid-1980s there has been a substantial amount of policy reform and opening up of many developing countries, and indicators of that progress have been made available recently by a new study that has compiled estimates for a much larger sample of developing countries and for as many years as possible since 1955. The new study also covers Europe s transition economies and comparable estimates for high-income countries, thereby covering more than 90 percent of world agricultural output and employment. This paper summarizes the methodology used in the new study (pointing out similarities and differences with those used by the OECD and by Krueger, Schiff and Valdes), compares a synopsis of the indicators from Krueger, Schiff and Valdes and the new study for the period to 1984, summarizes the changing extent of price distortions across countries and commodities globally since then, and concludes by evaluating the degree of distortion reduction over the years since 1984 compared with how much still remains, according to the results of a global economy wide model.en-USCC BY 3.0 IGOABSOLUTE VALUESADVANCED ECONOMIESADVERSE IMPACTAGRICULTURAL ECONOMICSAGRICULTURAL OUTPUTAGRICULTURAL PRICEAGRICULTURAL PRICESAGRICULTUREALLOCATIONBALANCE SHEETSBENCHMARKBORDER PRICECHANGES IN PRICESCLIMATECLIMATE CHANGECOMMODITIESCOMMODITYCOMMODITY PRICECOMMODITY PRICESCOMPARATIVE ADVANTAGESCOMPETITIVENESSCONSTANT DOLLARSCONSUMER PRICESCONSUMERSCOUNTRY FIXED EFFECTSCURRENCYDATA AVAILABILITYDEREGULATIONDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPING ECONOMIESDOLLAR VALUESDOMESTIC COMPETITIONDOMESTIC ECONOMYDOMESTIC MARKETDOMESTIC MARKETSDOMESTIC PRICEDOMESTIC PRICESECONOMETRICSECONOMIC COOPERATIONECONOMIC COSTSECONOMIC DEVELOPMENTECONOMIC EFFECTSECONOMIC GROWTHECONOMIC WELFAREECONOMY WIDE MODELINGEMERGING ECONOMIESEQUILIBRIUMEQUILIBRIUM PRICEEXCHANGE RATEEXCHANGE RATE MOVEMENTSEXCHANGE RATE POLICIESEXCHANGE RATESEXPORT BARRIERSEXPORT SUBSIDIESEXPORTERSEXTERNALITIESFINANCIAL ASSISTANCEFIXED EXCHANGE RATEFOOD PRICEFOOD PRICESFOREIGN CURRENCYFOREIGN DEBTFOREIGN EXCHANGEFOREIGN EXCHANGE MARKETFREE TRADEGDPGDP PER CAPITAGENERAL EQUILIBRIUMGENERAL EQUILIBRIUM ANALYSISGLOBAL DEMANDGLOBAL ECONOMYGLOBAL EXPORTSGLOBAL MARKETSGLOBAL OUTPUTGLOBALIZATIONGOVERNMENT INTERVENTIONGROSS VALUEGROWTH IN DEMANDGROWTH RATEHIGH-INCOME COUNTRIESHIGH-INCOME COUNTRYIMPORTIMPORT BARRIERSIMPORT PROTECTIONIMPORT RESTRICTIONSIMPORT TARIFFSIMPORT-SUBSTITUTING INDUSTRIALIZATIONIMPORT-SUBSTITUTING INDUSTRIALIZATION STRATEGYIMPORTSINCOMEINCOME GROUPINCOME GROUPSINCOMESINDUSTRIALIZATIONINTERNATIONAL COMPETITIVENESSINTERNATIONAL ECONOMICSINTERNATIONAL MARKETSINTERNATIONAL PRICEINTERNATIONAL PRICESINTERNATIONAL TRADEINTERNATIONAL TRADE POLICIESINTERNATIONAL TRADE POLICYLESS DEVELOPED ECONOMIESLIBERALIZATIONLOW-INCOME COUNTRIESMACROECONOMIC POLICYMARGINAL COSTSMARKET DISTORTIONSMARKET ECONOMIESMARKET EQUILIBRIUMMARKET EQUILIBRIUM PRICEMARKET LIBERALIZATIONMERCHANDISEMERCHANDISE TRADEMISALIGNMENTMONOPOLIESMULTILATERAL TRADEMULTIPLE EXCHANGE RATESNATIONAL INCOMEOPEN ECONOMYOUTPUTOVERVALUATIONOVERVALUED EXCHANGE RATESPER CAPITA INCOMEPER CAPITA INCOMESPOLICY IMPLICATIONSPOLITICAL ECONOMYPOVERTY REDUCTIONPRICE COMPARISONPRICE COMPARISONSPRICE DISTORTIONPRICE DISTORTIONSPRICE ELASTICITIESPRICE HIKEPRICE INCENTIVESPRICE INDEXPRICE SUBSIDIESPRICE TRENDSPRICING POLICYPRIVATIZATIONPRODUCER PRICEPROTECTIONISMPURCHASE PRICEREAL EXCHANGE RATEREAL EXCHANGE RATESREAL GDPRELATIVE PRICERELATIVE PRICESRETAILSINGLE MARKETSLOWDOWNSOCIALIST ECONOMIESSTANDARD DEVIATIONSUBSIDIZATIONSUBSTITUTIONTAXTAXATIONTRADABLE GOODSTRADE DATATRADE LIBERALIZATIONTRADE NEGOTIATIONSTRADE POLICIESTRADE POLICYTRADE PROTECTIONTRADE RESTRICTIONSTRADE TAXTRADE TAXESTRADING SYSTEMTRANSITION ECONOMIESUNDERESTIMATESUNDERVALUATIONURUGUAY ROUNDVALUE ADDEDVOLATILITYVOLUME OF TRADEWEIGHTSWORLD DEVELOPMENT INDICATORSWORLD MARKETSWORLD TRADEWORLD TRADE ORGANIZATIONWTO10.1596/1813-9450-5165