Comparative analysis of data frameworks for agricultural policy analysis: The WTO-notificaitons and the OECD's PSE database
The OECD and the WTO have accumulated systematic data on the magnitude of support going to farmers as a result of farm policies. The datasets are collected for different purposes, but give a detailed picture of the evolution of these policies. This paper extends recent work on the compatibility of these two classification systems with a focus on Norway, Switzerland, the US and the EU. The results show how the OECD data set, particularly with respect to the link between direct payments and production requirements, complements that of the WTO. Many payments classified as in the WTO Green Box require production, raising the possibility that they may not be trade-neutral. Though the issue of correct notifications to the WTO is the province of lawyers, the implications for modeling and policy analysis is more interesting to economists. And the broader question of improving the consistency of the two datasets is of importance in the quest for transparency.
This work was undertaken while Mittenzwei was a Research Fellow at the Europe Center.