A social accounting matrix multiplier analysis of the effects of agricultural support policies: the case of US

Abstract

This study investigates the economywide effects of agricultural support policies in the US, with special reference to changes required by the Uruguay Round Agreement on Agriculture. For this purpose, the relevant multipliers are derived using a Social Accounting Matrix (SAMs) framework that is known to be capable of describing certain structural features of an economy by capturing the interactions between various micro and macro accounts. Following a discussion on their theoretical derivation and decomposition, SAM multipliers are computed at two different levels of aggregation, and are used to investigate the effects of a switch to decoupled support to US farming on the US economy.