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Distributive impacts of alternative agricultural policies: A SAM-based analysis for Italy

  • Benedetto Rocchi

    ()

    (Department of Agricultural and Resource Economics, University of Florence, P.le delle Cascine 18, 50144 Florence Italy)

  • Donato Romano

    (Department of Agricultural and Resource Economics, University of Florence, P.le delle Cascine 18, 50144 Florence Italy)

  • Gianluca Stefani

    (Department of Agricultural and Resource Economics, University of Florence, P.le delle Cascine 18, 50144 Florence Italy)

This paper assesses the distributive impacts of alternative agricultural policies in a SAM (social accounting matrix) framework. A SAM of the Italian economy has been properly modified in order to focus on agriculture. In doing so, a new method for disaggregating the institutional sectors and the production factors in a SAM framework has been proposed. Two types of analysis have been carried out: (i) a multiplier analysis, and (ii) an assessment of the distributive impacts of different sector policies. The main results can be summarised as follows: (i) ‘fully’ decoupled agricultural household income supporting schemes (transfers to agricultural households) are the most equitable interventions and determine a perfect targetVof the distributive effect on the relevant institutional sectors; (ii) ‘partially’ decoupled income supporting interventions, such as the ones implemented under the CAP before the Mid Term Review, are more effective than others (i.e., through multiplier effects) in indirectly generating positive impacts on the income of agricultural households; (iii) agricultural price support interventions show less desirable effects in terms of their distributive impacts: they are less effective as agricultural income-increasing policies and their distributive impacts are biased against poorer households both in agricultural and non-agricultural sectors.

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Article provided by INRA Department of Economics in its journal Cahiers d'Economie et Sociologie Rurales.

Volume (Year): 77 (2005)
Issue (Month): ()
Pages: 85-112

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Handle: RePEc:rae:jouces:v:77:y:2005:i::p:85-112
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  1. Waters, Edward C. & Weber, Bruce A. & Holland, David W., 1999. "The Role Of Agriculture In Oregon'S Economic Base: Findings From A Social Accounting Matrix," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(01), July.
  2. Deborah Roberts, 2003. "The economic base of rural areas: a SAM-based analysis of the Western Isles, 1997," Environment and Planning A, Pion Ltd, London, vol. 35(1), pages 95-111, January.
  3. Manuel Alejandro Cardenete & Ferran Sancho, 2004. "Reverse impact assessment using a regional social accounting matrix," Environment and Planning A, Pion Ltd, London, vol. 36(5), pages 937-945, May.
  4. P. Midmore, 1993. "Input-Output Forecasting Of Regional Agricultural Policy Impacts," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(2), pages 284-300.
  5. Roberts, Deborah, 1995. "UK Agriculture in the Wider Economy: The Importance of Net SAM Linkage Effects," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 22(4), pages 495-511.
  6. Roland-Holst, David W & Sancho, Ferran, 1992. "Relative Income Determination in the United States: A Social Accounting Perspective," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 38(3), pages 311-27, September.
  7. Pyatt, F Graham & Round, Jeffery I, 1979. "Accounting and Fixed Price Multipliers in a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 89(356), pages 850-73, December.
  8. Saraceno, Elena, 1994. "Alternative Readings of Spatial Differentiation: The Rural versus the Local Economy Approach in Italy," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 21(3-4), pages 451-74.
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