A Simulation Model of the U.S. Export Enhancement Program for Wheat in the Presence of an EC Response.

A quarterly spatial price equilibrium model of world wheat trade combined with Nash bargaining game models is employed to examine the effects of targeting European Community export markets under the United States' Export Enhancement Program. An EC response protecting the volume of EC wheat exports for the quarter January to March 1986 is shown to lead to export revenues for both the United States and the European Community slightly below those obtained in the absence of the European Enhancement Program. Copyright 1989 by Oxford University Press.