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Abstract

This report presents preliminary results of impacts on factors of production in the United States, following reductions in assistance to agriculture. Analysis was conducted by modifying the production structure of the U.S. country model in SWOPSIM to explicitly include inputs employed by agriculture. The results indicate that it is important to adequately model the production technology and include inputs, otherwise simulation results may not capture the impact of liberalization on input use and may not adequately represent changes in producer income.

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