This paper reviews the literature on applied general equilibrium analysis of agricultural and resource policies. It begins with an historical overview, followed by an assessment of the benefits of this methodology for examining sectoral policies. The chapter then turns to questions of disaggregation of commodities, households, regions and factors of production. Parameter specification and model closure are discussed, as well as problems of modeling policies which affect agriculture. There are also special sections on agriculture and the environment, product differentiation and imperfect competition and model validation. The paper closes with a discussion of future challenges to the field.
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