



Last updates: Website in July 2020, Consortium database: July 2020, IO contributions: December 2019
The MPD measures the extent to which a set of agricultural policies affects the market price of a commodity. The normal practice is to calculate the MPD using a price gap which measures the difference between the domestic price and the border price of a commodity. As an alternative to the price gap method, MPD can be derived from the value of export subsidies or based on applied MFN tariff rate.