The impact of removing the sugar quota on the US economy: A general equilibrium analysis

This paper assesses the effects of the sugar program on the sectors of the U.S. economy. A computable general equilibrium (CGE) model of the United States is used to survey the impacts of this program. The model includes 15 producing sectors, 14 consuming sectors, 6 consumer groups, a government sector, and a foreign sector. The study reveals that the U.S. Sugar Program causes an aggregate reduction in the output-producing sectors. In addition, the welfare of the 6 consumer groups combined is also negatively effected by the program. Also included are sensitivity experiments that compare the impacts of different input substitution elasticities; the results remain unchanged.