Strategic Agricultural Trade Policy Interdependence is modeled using a game theoretic framework. The model distinguishes between the European Community, the United States and a politically passive rest-of-the-world. Particular emphasis is placed on the effect of the exchange rate on the equilibrium
Water, externality and strategic interdependence: a general equilibrium analysis
โ Scribed by Terry Roe; Xinshen Diao
- Publisher
- John Wiley and Sons
- Year
- 2000
- Tongue
- English
- Weight
- 182 KB
- Volume
- 12
- Category
- Article
- ISSN
- 0954-1748
No coin nor oath required. For personal study only.
โฆ Synopsis
In a region with shared water aquifers, the use of water by one country becomes an externality to another. A policy to subsidize water is shown to lead to both countries being made worse o. However, such policies tend to receive the support of special interests having water rights, and those in sectors such as agriculture that uses water relatively intensively. A unilateral water tax will reduce own country's GDP and rise GDP in the other country. Only when both countries impose a tax co-operatively, will GDP rise in both countries.
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