Trade Liberalization Fails to Lift the Poor Due to Imperfect Information
This article examines how trade liberalization impacts different groups of households with varying incomes across regions when considering imperfect information. Two computer models were compared: one standard and one with added factors like risk aversion and lag in agricultural production. The research looked at the income changes of middle-low and middle-high income households in Europe, the United States, and the Rest of the World after agricultural trade liberalization. The findings suggest that including imperfect information in the model may alter the expected benefits from trade liberalization, potentially affecting low and middle-income households differently in different parts of the world.