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THE POLICY ANALYSIS MATRIX IN AGRICULTURAL DEVELOPMENT
SECTION I. THE PRACTICE OF AGRICULTURAL POLICY ANALYSIS
Framework for Agricultural Policy Analysis
Effectiveness of Price Policies
Linkages between Macroeconomic and Agricultural Price Policies
SECTION II. INTRODUCTION TO THE POLICY ANALYSIS MATRIX
Comparisons among Agricultural Systems Producing Different Outputs
SECTION III. INTERPRETATION AND COMMUNICATION OF PAM RESULTS
Interpretation of the Effects of Divergences
The Policy Analysis Matrix and Agricultural Planning
The PAM and Price Policy Analyses
PAM and Investment Policy Analysis
PAM and Agricultural Research Policy Analysis
Communicating Results to Policy-Makers
Essential Elements of Policy Memos
Implications of the Results for National Interest Groups
International Ramifications of the Results
Summary of the Pros and Cons of Policy Choices
Illustration of Elements of a Policy Memo
5. Implications of Results for National Interest Groups
6. International Ramification of Results
7. Summary of the Pros and Cons o f Policy Choices
ECONOMIC ANALYSIS OF AGRICULTURAL PROJECTS
SECTION I. IDENTIFYING PROJECT COSTS AND BENEFITS
Objectives, Costs, and Benefits
"With" and "Without" Comparisons
Costs of Agricultural Projects
Tangible Benefits of Agricultural Projects
Changes in product form (grading and processing)
Cost reduction through mechanization
Other kinds of tangible benefits
SECTION II. PRICING PROJECT COSTS AND BENEFITS
Point of first sale and farm-gate price
Other problems in finding market prices
Prices for Internationally Traded Commodities
Financial Export and Import Parity Prices
SECTION III. DETERMINING ECONOMIC VALUES
Determining the Premium on Foreign Exchange
Adjusting Financial Prices to Economic Values
Step 1. Adjustment for direct transfer payments
Step 2. Adjustment for price distortions in traded items
Step 3. Adjustment for price distortions in nontraded items
Economic export and import parity values
Trade Policy Signals from Project Analysis
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