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Rural Economies and ahe Pillar 2 Budget Debate: A Regional Perspective

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  • Ratinger, Tomas
  • Kristkova, R.

Abstract

In this paper, three scenarios concerning different budget options of the reformed CAP are analysed based on the general equilibrium approach. The simulations consider a policy shock in 2014 and assess its impact until 2020. The results suggest that the changes in financing the second pillar CAP will produce only marginal effects on the economy. However, the reallocation of funds from the first to the second pillar has considerably larger negative effects on gross value added and employment in agriculture than the case of the second pillar budget reduction. On the other hand, the reallocation of funds will produce small but positive effects on the remaining sectors of the economy and the GDP. Research presented in this paper is the result of a research grant MSM 6046070906 “Economics of Czech agricultural resources and their efficient usage within the framework of multifunctional agri-food systems” and a Research Task of UZEI conducted for the Ministry of Agriculture TÚ 4241/2011”.

Suggested Citation

  • Ratinger, Tomas & Kristkova, R., 2012. "Rural Economies and ahe Pillar 2 Budget Debate: A Regional Perspective," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 4(4), pages 1-11, December.
  • Handle: RePEc:ags:aolpei:146268
    DOI: 10.22004/ag.econ.146268
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    File URL: https://ageconsearch.umn.edu/record/146268/files/agris_on-line_2012_4_ratinger_kristkova.pdf
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    References listed on IDEAS

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    1. Demetrios Psaltopoulos & Euan Phimister & Tomas Ratinger & Deborah Roberts & Dimitris Skuras & Eudokia Balamou & Zuzana Bednarikova & Maria Espinosa & Sergio Gomez y Paloma & Sebastien Mary & Frantise, 2012. "Ex-ante Spatial Policy Impact Analysis of the Rural Development Policy in European Rural Areas (RURAL ECMOD)," JRC Working Papers JRC68412, Joint Research Centre (Seville site).
    2. Louhichi, Kamel & Kanellopoulos, Argyris & Janssen, Sander & Flichman, Guillermo & Blanco, Maria & Hengsdijk, Huib & Heckelei, Thomas & Berentsen, Paul & Lansink, Alfons Oude & Ittersum, Martin Van, 2010. "FSSIM, a bio-economic farm model for simulating the response of EU farming systems to agricultural and environmental policies," Agricultural Systems, Elsevier, vol. 103(8), pages 585-597, October.
    3. Alexandre Gohin & Laure Latruffe, 2006. "The Luxembourg Common Agricultural Policy Reform and the European Food Industries: What's at Stake?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(1), pages 175-194, March.
    4. Psaltopoulos, Demetris & Balamou, Eudokia & Skuras, Dimitris & Ratinger, Tomas & Sieber, Stefan, 2011. "Modelling the impacts of CAP Pillar 1 and 2 measures on local economies in Europe: Testing a case study-based CGE-model approach," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 53-69, January.
    5. Demetrios Psaltopoulos & Eudokia Balamou & Kenneth J. Thomson, 2006. "Rural–Urban Impacts of CAP Measures in Greece: An Inter‐regional SAM Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(3), pages 441-458, September.
    6. Neri Salvadori, 2007. "The Institutional and Social Dynamics of Growth and Distribution," Economics Bulletin, AccessEcon, vol. 28(29), pages 1.
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