This paper presents a multicommodity price-endogenous spatial equilibrium model of the (European Community) EC feed grain sector. The model incorporates nonintegrable feed grain demand functions which were estimated using a pseudodata approach based on a set of representative least-cost LP models of compound feed production in the EC. The price and quantity impacts of three "rebalancing" EC policies are investigated within a comparative statics framework: the abolition of the green rates or Monetary Compensatory Amounts (MCA) system, a 10% cut in support prices for EC grains, and a 10% tax on the use of imported cereal substitutes. Both "short-run" (constant livestock output) and "long-run" (variable livestock output) results are reported at the EC level.
Peters, Ludo, "An EC Feed Grain Spatial Equilibrium Model for Policy Analysis" (1990). CARD Working Papers. 93.