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

  • Tobias Müller
  • Jean-Marie Grether

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.

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Article provided by Swiss Society of Economics and Statistics (SSES) in its journal Swiss Journal of Economics and Statistics.

Volume (Year): 138 (2002)
Issue (Month): III (September)
Pages: 271-292

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Handle: RePEc:ses:arsjes:2002-iii-3
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  1. Herok, Claudia A. & Lotze, Hermann, 2000. "Implications of an EU Eastern Enlargement Under a New Common Agricultural Policy," Journal of Policy Modeling, Elsevier, vol. 22(6), pages 661-690, November.
  2. Brown, Drusilla K., 1987. "Tariffs, the terms of trade, and national product differentiation," Journal of Policy Modeling, Elsevier, vol. 9(3), pages 503-526.
  3. Hertel, Thomas W., 2002. "Applied general equilibrium analysis of agricultural and resource policies," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 26, pages 1373-1419 Elsevier.
  4. Anderson, Kym, 1993. "Lobbying Incentives and the Pattern of Protection in Rich and Poor Countries," CEPR Discussion Papers 789, C.E.P.R. Discussion Papers.
  5. Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1992. "Earnings losses of displaced workers," Working Paper Series, Macroeconomic Issues 92-28, Federal Reserve Bank of Chicago.
  6. de Melo, Jaime & Robinson, Sherman, 1989. "Product differentiation and the treatment of foreign trade in computable general equilibrium models of small economies," Journal of International Economics, Elsevier, vol. 27(1-2), pages 47-67, August.
  7. Jean-Marie Grether & Tobias Müller, 2000. "Decomposing the Economic Costs and Benefits of Accession to the EU: the Swiss Case," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 2000.02, Institut d'Economie et Econométrie, Université de Genève.
  8. Harrison, Glenn W. & Rutherford, Thomas F. & Wooton, Ian, 1995. "Liberalizing agriculture in the European union," Journal of Policy Modeling, Elsevier, vol. 17(3), pages 223-255, June.
  9. Clinton R. Shiells & Kenneth A. Reinert, 1993. "Armington Models and Terms-of-Trade Effects: Some Econometric Evidence for North America," Canadian Journal of Economics, Canadian Economics Association, vol. 26(2), pages 299-316, May.
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