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Modelling Agricultural Policies in the CEE Accession Countries

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Author Info

  • d’Artis Kancs
  • Gerald Weber

Abstract

The present paper analyses sectoral impacts of the CEE integration with EU. Adopting a par-tial equilibrium model we explicitly model the agricultural sector in CEE. The underlying par-tial equilibrium model is based on the duality theory. The model captures all key CAP instru-ments, such as price support, area payments, animal premiums, quotas and set-aside premiums. The policy simulation analysis allows us to track how changes in the CAP affect the supply and demand behaviour of agricultural producers and consumers of food products. Our simulation results suggest that farm income in CEE will rise mainly due to area payments and animal pre-miums. The impact on consumer welfare is rather small, as decreasing prices for some food products are offset by increasing prices for other agricultural goods.

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Bibliographic Info

Paper provided by Economics and Econometrics Research Institute (EERI), Brussels in its series EERI Research Paper Series with number EERI_RP_2001_02.

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Length: 30 pages
Date of creation: 02 May 2001
Date of revision:
Handle: RePEc:eei:rpaper:eeri_rp_2001_02

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Related research

Keywords: Policy modelling; partial equilibrium model; CEE; CAP.;

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Cited by:
  1. Pavel Ciaian & d'Artis Kancs & Jan Pokrivcak, 2008. "Comparative Advantages, Transaction Costs and Factor Content of Agricultural Trade: Empirical Evidence from the CEE," EERI Research Paper Series EERI_RP_2008_03, Economics and Econometrics Research Institute (EERI), Brussels.
  2. James Anderson, 2001. "Migration, FDI, and the Margins of Trade," EERI Research Paper Series EERI_RP_2001_05, Economics and Econometrics Research Institute (EERI), Brussels.
  3. Chen, Xi & Zhou, Bin & Zhong, Funing, 2010. "Do Consumers Really Care about Genetically Modified (GM) Food Label? What Do We Know? What Else Should We Know?," Journal of Economics and Econometrics, Economics and Econometrics Research Institute (EERI), Brussels, vol. 53(2), pages 32-56.

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