Modelling Agricultural Policies in the CEE Accession Countries
AbstractThe 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 InfoPaper provided by Economics and Econometrics Research Institute (EERI), Brussels in its series EERI Research Paper Series with number EERI_RP_2001_02.
Length: 30 pages
Date of creation: 02 May 2001
Date of revision:
Policy modelling; partial equilibrium model; CEE; CAP.;
Find related papers by JEL classification:
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
- J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
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