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Evaluating the Market and Welfare Impacts of Agricultural Policies in Developed Countries: Comparison of Partial and General Equilibrium Measures

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  • Alexandre Gohin
  • GianCarlo Moschini

Abstract

We revisit the question of choosing partial equilibrium or general equilibrium modeling in applied policy analysis in the context of evaluating the effects of a complete phase-out of the Common Agricultural Policy (CAP) of the European Union. We compare the results of three models—two three-sector general equilibrium models (one with an additional major distortion in the nonagricultural sector) and a two-sector partial equilibrium model. We find that the market effects of a complete phase-out of the CAP are quite comparable across these models. On the other hand, the measured welfare impacts may depend on the modeling choice. Copyright 2006, Oxford University Press.

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File URL: http://hdl.handle.net/10.1111/j.1467-9353.2006.00281.x
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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal Review of Agricultural Economics.

Volume (Year): 28 (2006)
Issue (Month): 2 ()
Pages: 195-211

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Handle: RePEc:oup:revage:v:28:y:2006:i:2:p:195-211

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Cited by:
  1. Michalek, Jerzy & Ciaian, Pavel & Kancs, d'Artis & Gomez y Paloma, Sergio, 2011. "Distributional Effects of CAP Subsidies: Micro Evidence from the EU," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 102978, Agricultural and Applied Economics Association.
  2. Hess, Sebastian & von Cramon-Taubadel, Stephan, 2007. "Assessing general and partial equilibrium simulations of Doha round outcomes using meta-analysis," Center for European, Governance and Economic Development Research Discussion Papers 67, University of Goettingen, Department of Economics.
  3. Thilo Glebe & Uwe Latacz-Lohmann, 2007. "Agricultural multifunctionality and trade liberalisation," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 82, pages 57-73.
  4. Robert M´barek & Ivelin Iliev Rizov, 2013. "European Coexistence Bureau. Best Practice Documents for coexistence of genetically modified crops with conventional and organic farming. 3. Coexistence of genetically modified maize and honey product," JRC-IPTS Working Papers JRC84850, Institute for Prospective and Technological Studies, Joint Research Centre.
  5. Gohin, Alexandre & Bureau, Jean-Christophe, 2006. "WTO Discipline and the CAP: the Constraints on the EU Sugar Sector," Working Papers 18872, TRADEAG - Agricultural Trade Agreements.
  6. Gohin, Alexandre & Rault, Arnaud, 2012. "Assessing the economic costs of an outbreak of Foot and Mouth Disease on Brittany: A dynamic computable general equilibrium approach," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122438, European Association of Agricultural Economists.
  7. Niemi, Jyrki S. & Fahlbeck, Erik & Hofreither, Markus F., 2005. "Ten Years After - Welfare Effects of the Application of the CAP in Austria, Finland and Sweden," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24767, European Association of Agricultural Economists.
  8. Abler, David G., 2006. "Approaches to Measuring the Effects of Trade Agreements," Commissioned Papers 140762, Canadian Agricultural Trade Policy Research Network.
  9. Hess, Sebastian & von Cramon-Taubadel, Stephan, 2007. "Assessing general and partial equilibrium simulations of Doha round outcomes using meta-analysis," Center for European, Governance and Economic Development Research Discussion Papers 67, University of Goettingen, Department of Economics.
  10. Gohin, Alexandre & Rault, Arnaud, 2012. "Assessing the economic costs of an outbreak of Foot and Mouth Disease on Brittany: A dynamic computable general equilibrium," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134712, Agricultural Economics Society.
  11. Brockmeier, Martina & Bektasoglu, Beyhan, 2014. "Model structure or data aggregation level: Which leads to greater bias of results?," Economic Modelling, Elsevier, vol. 38(C), pages 238-245.
  12. Gohin, Alexandre & Bureau, Jean-Christophe, 2005. "Sugar Market Liberalization: Modeling the EU Supply of "C" Sugar," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24740, European Association of Agricultural Economists.
  13. Gohin, Alexandre & Rault, Arnaud, 2013. "Assessing the economic costs of a foot and mouth disease outbreak on Brittany: A dynamic computable general equilibrium analysis," Food Policy, Elsevier, vol. 39(C), pages 97-107.
  14. Gohin, Alexandre & Bureau, Jean-Christophe, 2006. "Bridging Micro- and Macro-Analyses of the EU Sugar Program: Methods and Insights," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25799, International Association of Agricultural Economists.

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