“…Roberts, 1994), but in terms of GE modelling this represents only a half-way house, suffering from the limitations of exogenous final demand, perfectly elastic factor supplies, an absence of behavioural relationships and an inability to demonstrate welfare effects. Elsewhere, principally in Australia, North America and Continental Europe, a limited amount of work has been undertaken using AGE models to analyse the economy-wide effects of agricultural policy issues, including tax preferences (Hertel & Tsigas, 1988), unilateral liberalization of the agricultural sector , interregional effects of farm subsidies (Kilkenny, 1993) and multilateral trade negotiations (Nguyen et al, 1993;OECD, 1993). An overview of the use of AGE modelling in agricultural policy analysis is provided by Hertel (1991).…”