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An ex-ante analysis of distributional effects of the CAP on western German farm incomes

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  • Deppermann, Andre
  • Grethe, Harald
  • Offermann, Frank

Abstract

This study is concerned with measuring impacts of the Common Agricultural Policy (CAP) on farm income distribution of western Germany. Not only the sheer contribution of market price support and direct payments as a proportion of income is taken into account, but also the impact of support on production incentives. For this purpose, we apply a modelling system consisting of a partial equilibrium model and a programming model. Based on a comparison of Gini coefficients and a decomposition of overall inequality effects we conclude that liberalization of the agricultural sector leads to a more unequal distribution of family farm income in relative terms, whereas a liberalized market provides a more equal situation in absolute terms.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 122nd Seminar, February 17-18, 2011, Ancona, Italy with number 99428.

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Date of creation: 10 Feb 2011
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Handle: RePEc:ags:eaa122:99428

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Related research

Keywords: Income distribution; CAP; Farm Group Model; Equilibrium Model; Agricultural and Food Policy; Q11; Q12; Q18; C54; C6; D31;

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