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Distributional effects of CAP liberalisation on western German farm incomes: an ex-ante analysis

Author

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  • Andre Deppermann
  • Harald Grethe
  • Frank Offermann

Abstract

We measure impacts of liberalising European agriculture on farm income distribution in western Germany. Unlike previous studies, we do not treat market income and policy support as independent income sources. We jointly apply a partial equilibrium and a programming model and find that liberalisation increases inequality in relative terms though it decreases inequality in absolute terms. In particular, we analyse the relevance of taking into account policy-induced production and market responses in an ex-ante inequality analysis. We find that although their inclusion generally does not affect the direction of distributional effects, it may have considerable impact on their magnitude.

Suggested Citation

  • Andre Deppermann & Harald Grethe & Frank Offermann, 2014. "Distributional effects of CAP liberalisation on western German farm incomes: an ex-ante analysis," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 41(4), pages 605-626.
    • Handle: RePEc:oup:erevae:v:41:y:2014:i:4:p:605-626.
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    File URL: http://hdl.handle.net/10.1093/erae/jbt034
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    Citations

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    Cited by:

    1. Gohin, Alexandre & Zheng, Yu, 2020. "Reforming the European Common Agricultural Policy: From price & income support to risk management," Journal of Policy Modeling, Elsevier, vol. 42(3), pages 712-727.
    2. Kostov, Philip & Davidova, Sophia & Gjokaj, Ekrem, 2021. "Does Policy Support Really Help Farmers’ Incomes: The Case of Kosovo," 2021 Conference, August 17-31, 2021, Virtual 315278, International Association of Agricultural Economists.
    3. Gohin, Alexandre & Zheng, Yu, 2015. "Assessing the Market Impacts of the Common Agricultural Policy: Does Farmers’ Risk Attitude Matter?," 2015: Trade and Societal Well-Being, December 13-15, 2015, Clearwater Beach, Florida 229235, International Agricultural Trade Research Consortium.
    4. Mack, Gabriele & Kohler, Andreas, 2017. "Short- and long-run policy evaluation: support for grassland-based milk production in Switzerland," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261116, European Association of Agricultural Economists.
    5. Deppermann, Andre & Offermann, Frank & Grethe, Harald, 2016. "Redistributive effects of CAP liberalisation: From the sectoral level to the single farm," Journal of Policy Modeling, Elsevier, vol. 38(1), pages 26-43.
    6. Wagner, Susanne & Angenendt, Elisabeth & Beletskaya, Olga & Zeddies, Jürgen, 2017. "Assessing ammonia emission abatement measures in agriculture: Farmers' costs and society's benefits – A case study for Lower Saxony, Germany," Agricultural Systems, Elsevier, vol. 157(C), pages 70-80.
    7. Jörg Rieger & Florian Freund & Frank Offermann & Inna Geibel & Alexander Gocht, 2023. "From fork to farm: Impacts of more sustainable diets in the EU‐27 on the agricultural sector," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 764-784, September.
    8. Deppermann, Andre & Offermann, Frank & Grethe, Harald, 2014. "Income effects of EU biofuel policies in Germany," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182803, European Association of Agricultural Economists.
    9. Deppermann, Andre & Offermann, Frank & Puttkammer, Judith & Grethe, Harald, 2016. "EU biofuel policies: Income effects and lobbying decisions in the German agricultural sector," Renewable Energy, Elsevier, vol. 87(P1), pages 259-265.
    10. Judith Hecht & Simon Moakes & Frank Offermann, 2016. "Summary," EuroChoices, The Agricultural Economics Society, vol. 15(3), pages 25-32, December.
    11. Robert Finger & Nadja El Benni, 2021. "Farm income in European agriculture: new perspectives on measurement and implications for policy evaluation," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(2), pages 253-265.
    12. Nitta, Atomu & Yamamoto, Yasutaka & Kondo, Katsunobu & Sawauchi, Daisuke, 2020. "Direct payments to Japanese farmers: Do they reduce rice income inequality? Lessons for other Asian countries," Journal of Policy Modeling, Elsevier, vol. 42(5), pages 968-981.

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