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Structural change in European calf markets: decoupling and the blue tongue disease

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  • Rico Ihle
  • Bernhard Br�mmer
  • Stanley R. Thompson

Abstract

European cattle markets have recently undergone significant change. We explore the simultaneous impacts of agricultural policy reform and the occurrence of an animal health crisis on spatial interdependencies of calf prices of four major European Union markets. The markets are found to be integrated. Price shocks are rapidly absorbed. We find that the member state specific implementations of the 2003 Common Agricultural Policy reforms significantly affected prices of both the national market and of other member states. The blue tongue disease further induced structural change. Using counterfactual scenarios, we show that the decoupling of payments from production led to reduced calf prices. , Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/erae/jbr042
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Bibliographic Info

Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 39 (2012)
Issue (Month): 1 (February)
Pages: 157-180

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Handle: RePEc:oup:erevae:v:39:y:2012:i:1:p:157-180

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Cited by:
  1. Esposti, Roberto & Listorti, Giulia, 2011. "Agricultural Price Transmission Across Space and Commodities During Price Bubbles," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114338, European Association of Agricultural Economists.
  2. Listorti, Giulia & Esposti, Roberto, 2012. "Horizontal Price Transmission in Agricultural Markets: Fundamental Concepts and Open Empirical Issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 1, April.

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