Methodological Annex - Trade and Assistance Review 2015-16

Assistance estimates can also be of use as an input into broader evaluations of the merits of particular 4 Other assistance concepts that can be calculated include: the nominal rate of assistance on outputs which is the GSE divided by the industry’s value of production (measured in unassisted prices); and the nominal rate of assistance on inputs which is the TEM divided by the industry’s value of. [...] This aspect of the model, and the IBI approach, means that only the initial effects of assistance are captured, while the responses of producers and consumers to the incentives created by the provision of assistance are not (box 3.3). [...] 28 TRADE & ASSISTANCE REVIEW 2015-16: METHODOLOGICAL ANNEX 4 Re-benchmarking the Commission’s assistance estimates The assistance estimates published in Trade & Assistance Review 2015-16 are the first in a new series based on the 2013-14 input-output tables and import shares as the benchmark (reflecting the structure of the economy, which stays fixed for the series). [...] The Commission has therefore adjusted the inputs used in each of the 114 industry groups in proportion to the change in production for each industry by reallocating intermediate and primary inputs in proportion to the reallocation of outputs (that is, the industry technology assumption is adopted to re–allocated inputs). [...] RE-BENCHMARKING THE COMMISSION'S ASSISTANCE ESTIMATES 35 4.5 Coverage of budgetary assistance estimates For the 2013-14 series of assistance estimates, the Commission has continued to update the coverage of budgetary measures to reflect the introduction of new programs by the government, the inclusion of some previously unidentified or omitted assistance measures, and improvements in data availabi.