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Removal of farm subsidies in a regional economy: a computable general equilibrium analysis

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  • Francisco Javier de Miguel
  • Antonio Manresa

Abstract

The purpose of this article is to analyse the importance of farm subsidies for the Extremadura economy. To this end, a computable general equilibrium model for this region is presented, with which we analyse the economic effects caused by a simulated removal of these subsidies. Different scenarios involving the labour market rigidities and tax compensation are considered. Model parameters are determined by the procedure known as calibration, using a social accounting matrix constructed for this economy. The results clearly show the negative effects that this elimination would produce on the main micro and macroeconomic variables.

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  • Francisco Javier de Miguel & Antonio Manresa, 2008. "Removal of farm subsidies in a regional economy: a computable general equilibrium analysis," Applied Economics, Taylor & Francis Journals, vol. 40(16), pages 2109-2120.
    • Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2109-2120
    DOI: 10.1080/00036840600949371
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    Cited by:

    1. Manuel Alejandro Cardenete & María del Carmen Delgado, 2015. "Impact assessment of European funds in Andalusia 2007-2013. A CGE approach," Working Papers 2015-001, Universidad Loyola Andalucía, Department of Economics.
    2. Jos頃. Fari & Alberto L󰥺 & Ana Mart󻑍arcos, 2014. "Assessing the impact of domestic outsourcing and offshoring on productivity at the firm level," Applied Economics, Taylor & Francis Journals, vol. 46(15), pages 1814-1828, May.
    3. Ignacio Cazcarro & Rosa Duarte & Julio Sánchez Chóliz & Cristina Sarasa & Ana Serrano, 2016. "Modelling regional policy scenarios in the agri-food sector: a case study of a Spanish region," Applied Economics, Taylor & Francis Journals, vol. 48(16), pages 1463-1480, April.

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