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Long-Run Effects of the Common Agricultural Policy for Switzerland: A Simulation Analysis

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  • Tobias Müller
  • Jean-Marie Grether

Abstract

The long run impact of adopting the Common Agricultural Policy for Switzerland is analyzed on the basis of a three-region applied general equilibrium model. Estimates suggest that, because of the present high protection of agriculture, integration generates important net welfare gains (about 1 % of Swiss GDP) in spite of the small size of the agricultural sector. Taking into account adjustment costs due to temporary unemployment still produces sizeable welfare gains. Estimates of the distributive impacts are also provided along with an analysis of the robustness of results.

Suggested Citation

  • Tobias Müller & Jean-Marie Grether, 2002. "Long-Run Effects of the Common Agricultural Policy for Switzerland: A Simulation Analysis," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 138(III), pages 271-292, September.
    • Handle: RePEc:ses:arsjes:2002-iii-3
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    References listed on IDEAS

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    Cited by:

    1. Markus Lips & Peter Rieder, 2004. "Potential Impact of the WTO Doha Round on Swiss Agriculture," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 140(IV), pages 569-583, December.

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    Keywords

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    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F15 - International Economics - - Trade - - - Economic Integration
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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