Differentiated Demand and Supply of Wheat under Alternative European Trade Policies

Abstract

This paper proposes a partial equilibrium displacement model that differentiates wheat according to its end-use and country of origin to investigate the impact of alternative European trade policies on wheat supply and demand in France. Transmission, demand and supply elasticities are estimated for each class and origin of wheat. Simulation results show that rebalancing trade protection across wheat classes encourages domestic supply of high quality wheat and displaces imports from North America.Differentiated wheat, almost ideal demand system, partial equilibrium displacement model, common agricultural policy, European Union, Demand and Price Analysis,