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The Effects Of Single Farm Payments On Scottish Agriculture: A Cge Modeling Approach


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  • Gelan, Ayele
  • Schwarz, Gerald


Using a CGE model calibrated on Scottish data, this paper examines two important issues related to evaluating impacts of the Single Farm Payment. These are specification of product transformation functions and investigation into supply elasticity parameter. Simulation results from a standard CGE were compared with those from an alternative optimisation framework proposed in this study. The latter yielded a policy effect that is likely to represent behaviour of a profit maximising farmer. The parameter sensitivity analysis showed the important role differences in supply conditions can play; which implied a need for further econometric studies to estimate supply parameters.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 107th Seminar, January 30-February 1, 2008, Sevilla, Spain with number 6470.

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Date of creation: 2008
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Handle: RePEc:ags:eaa107:6470

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Related research

Keywords: Single farm payments; decoupling; multi-output farming; farm types; CET function; CGE modelling; Agricultural Finance; Demand and Price Analysis; Farm Management; Research Methods/ Statistical Methods;

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