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The Effects Of Single Farm Payments On Scottish Agriculture: A Cge Modeling Approach

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  • Gelan, Ayele
  • Schwarz, Gerald

Abstract

Using a CGE model calibrated on Scottish data, this paper examines two important issues related to evaluating impacts of the Single Farm Payment. These are specification of product transformation functions and investigation into supply elasticity parameter. Simulation results from a standard CGE were compared with those from an alternative optimisation framework proposed in this study. The latter yielded a policy effect that is likely to represent behaviour of a profit maximising farmer. The parameter sensitivity analysis showed the important role differences in supply conditions can play; which implied a need for further econometric studies to estimate supply parameters.

Suggested Citation

  • Gelan, Ayele & Schwarz, Gerald, 2008. "The Effects Of Single Farm Payments On Scottish Agriculture: A Cge Modeling Approach," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6470, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa107:6470
    DOI: 10.22004/ag.econ.6470
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    Cited by:

    1. Flaig, Dorothee & Boysen-Urban, Kirsten, 2019. "EU Agricultural Domestic Support in Global Value Chains or Where Does the Money Go?," Conference papers 333054, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Vellinga, Nico & Xu, Yan & Roberts, Deborah, 2013. "Understanding the economy-wide impacts of CAP decoupling: An assessment of alternative CGE model specifications," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158857, Agricultural Economics Society.
    3. Ferrari, Emanuele & Boulanger, Pierre & Gonzalez–Mellado, Aida & McDonald, Scott, 2012. "Decoupling Agricultural Policies in CGE Models: Theory and Empirics," Conference papers 332181, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Gelan, Ayele & Schwarz, Gerald, 2011. "Estimating the effects of single farm payments on multi-output agricultural production function," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(2).
    5. Ferrari, Emanuele & Boulanger, Pierre & Gonzalez-Mellado, Aida & McDonald, Scott, 2014. "Revisiting Decoupled Agricultural Policies in CGE frameworks: Theory and Empirics," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170397, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    Agricultural Finance; Demand and Price Analysis; Farm Management; Research Methods/ Statistical Methods;
    All these keywords.

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