Mean = 86 MS mean = 82 PhD mean = 93
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0 .01 .02 .03 .04 .05 Density 60 70 80 90 100 AG EC 640,Fall 2013 M idterm Results Mean = 86 MS mean = 82 PhD mean = 93
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Mean = 86 MS mean = 82 PhD mean = 93. Part 1: going from no-trade to trade at world prices. P. S. consumers add consumption, and gain G+H+I+J. A. Ps=100. D. E. B. C. F. Pe =200. H. G. K. producers reduce output and lose G+H. I. J. Pw=100. L. N. O. M. D. Q. - PowerPoint PPT Presentation
Transcript of Mean = 86 MS mean = 82 PhD mean = 93
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AGEC 640, Fall 2013 Midterm Results
Mean = 86MS mean = 82PhD mean = 93
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Pw=100
Ps=100
Pe=200
P
Q
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L
M
CD
J
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HI
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Part 1: going from no-trade to trade at world prices
consumers add consumption, and gainG+H+I+J
producersreduce outputand loseG+H
Efficiency gain is I + J,Therefore efficiency loss of autarky is -(I+J)
S
D
Pw=100
Ps=100
Pe=200
P
Q
A
B
G
L
M
CD
J
E
HI
F
N O
K
Part 2: going from no-trade to export subsidy
consumers face higherprices and lose-(B+C)
producersincrease outputand gainB+C+D+E
Export subsidy costs –(C+D+E+F) Therefore efficiency loss is –(C + F)
S
D
Pw=100
Ps=100
Pe=200
P
Q
A
B
G
L
M
CD
J
E
HI
F
N O
K
Combining: going from world price to export subsidy
Combined efficiency loss is –(C + F + I + J)
