Comparative analysis of data frameworks for agricultural policy analysis. The WTO‐notifications and the OECD’s PSE database

Abstract

Both 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 both give a detailed picture of the evolution of these policies. This paper extends recent work on the compatibility or otherwise of these two attempts at policy monitoring by considering the categorization of individual policy instruments in 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.