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Distributive impacts of alternative agricultural policies: A SAM-based analysis for Italy

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  • Benedetto Rocchi

    ()
    (Department of Agricultural and Resource Economics, University of Florence, P.le delle Cascine 18, 50144 Florence Italy)

  • Donato Romano

    (Department of Agricultural and Resource Economics, University of Florence, P.le delle Cascine 18, 50144 Florence Italy)

  • Gianluca Stefani

    (Department of Agricultural and Resource Economics, University of Florence, P.le delle Cascine 18, 50144 Florence Italy)

Abstract

This paper assesses the distributive impacts of alternative agricultural policies in a SAM (social accounting matrix) framework. A SAM of the Italian economy has been properly modified in order to focus on agriculture. In doing so, a new method for disaggregating the institutional sectors and the production factors in a SAM framework has been proposed. Two types of analysis have been carried out: (i) a multiplier analysis, and (ii) an assessment of the distributive impacts of different sector policies. The main results can be summarised as follows: (i) ‘fully’ decoupled agricultural household income supporting schemes (transfers to agricultural households) are the most equitable interventions and determine a perfect targetVof the distributive effect on the relevant institutional sectors; (ii) ‘partially’ decoupled income supporting interventions, such as the ones implemented under the CAP before the Mid Term Review, are more effective than others (i.e., through multiplier effects) in indirectly generating positive impacts on the income of agricultural households; (iii) agricultural price support interventions show less desirable effects in terms of their distributive impacts: they are less effective as agricultural income-increasing policies and their distributive impacts are biased against poorer households both in agricultural and non-agricultural sectors.

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Bibliographic Info

Article provided by INRA Department of Economics in its journal Cahiers d'Economie et Sociologie Rurales.

Volume (Year): 77 (2005)
Issue (Month): ()
Pages: 85-112

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Handle: RePEc:rae:jouces:v:77:y:2005:i::p:85-112

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Keywords: social accounting matrix (SAM); income distribution; Common Agricultural Policy;

References

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  1. Roland-Holst, D.W. & Sancho, F., 1991. "Ralative Income Determination in the United States: A Social Accounting Perspective," UFAE and IAE Working Papers 188.92, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  2. Manuel Alejandro Cardenete & Ferran Sancho, 2004. "Reverse impact assessment using a regional social accounting matrix," Environment and Planning A, Pion Ltd, London, vol. 36(5), pages 937-945, May.
  3. Roberts, Deborah, 1995. "UK Agriculture in the Wider Economy: The Importance of Net SAM Linkage Effects," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 22(4), pages 495-511.
  4. Deborah Roberts, 2003. "The economic base of rural areas: a SAM-based analysis of the Western Isles, 1997," Environment and Planning A, Pion Ltd, London, vol. 35(1), pages 95-111, January.
  5. Pyatt, F Graham & Round, Jeffery I, 1979. "Accounting and Fixed Price Multipliers in a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 89(356), pages 850-73, December.
  6. Saraceno, Elena, 1994. "Alternative Readings of Spatial Differentiation: The Rural versus the Local Economy Approach in Italy," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 21(3-4), pages 451-74.
  7. Waters, Edward C. & Weber, Bruce A. & Holland, David W., 1999. "The Role Of Agriculture In Oregon'S Economic Base: Findings From A Social Accounting Matrix," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(01), July.
  8. P. Midmore, 1993. "Input-Output Forecasting Of Regional Agricultural Policy Impacts," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(2), pages 284-300.
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Cited by:
  1. Paul Allanson & Benedetto Rocchi, 2006. "An analysis of the redistributive effects of agricultural policy in Tuscany with comparative results for Scotland," Dundee Discussion Papers in Economics 193, Economic Studies, University of Dundee.
  2. Paul Allanson & Benedetto Rocchi, 2008. "A comparative analysis of the redistributive effects of agricultural policy in Tuscany and Scotland," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 86(1), pages 35-56.
  3. Elsholz, Rudiger & Harsche, Johannes, 2011. "Price Changes, Policy Impacts and Instability in Farmers’ Revenues," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114342, European Association of Agricultural Economists.
  4. Benedetto Rocchi & Donato Romano & Raid Hamza, 2012. "Agriculture Reform and Food Crisis in Syria: Impacts on Poverty and Inequality," Working Papers - Economics wp2012_19.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
  5. Esposti, Roberto, 2008. "Reforming The Cap: An Agenda For Regional Growth?," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44868, European Association of Agricultural Economists.

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