2019 Volume 91 Issue 2 Pages 299-304
International prices of cereals in 2018 remain high relative to the level of 2005. This paper examines the influence of the increase in international cereal prices on Hokkaido and Tofuken agriculture, based on an inter-regional computable general equilibrium model. The primary outcome of the simulation is as follows. First, an increase in international prices increases agricultural output and farm labor input in Hokkaido and Tofuken. Second, the level of real GRP decreases in Hokkaido and Tofuken. Third, the welfare level of consumers in Hokkaido improves, but that in Tofuken deteriorates.
