Multimarket Analysis of Agricultural Price Policies in an Operational Context: The Case of Cyprus

This article presents a method of analysis of agricultural price policies. Its basic features are (1) the incorporation of important supply and demand substitution possibilities; (2) a flexible structure which can account for institutional features of the agricultural sector and its relationships with the rest of the economy; and (3) a focused, policy-oriented approach. An application to Cyprus is presented which highlights the differences between this approach and analyses of single markets. The method incorporates supporting software on personal computers, with the longer-term objective of developing this type of approach as a standard tool in pricing policy analysis.