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Who Bears the Burden of Common Agricultural Price Policy? The Distributive Effects of Market Price Support in the Agricultural Sector


  • Cristiano PERUGINI

    (Dipartimento di Economia, Università di Perugia)


The EU Common Agricultural Policy has historically been articulated into public budget payments and price support measures. From the distributive viewpoint, while the former are financed through the usual fiscal policy mechanisms (largely progressive), the financing structure of market price support (burdened on the consumers of food products) envisages a possible income regressive effect (via Engel’s law). The objective of the paper is to investigate the existence and the size of this effect. To achieve this aim we combine data and information from different sources (Bank of Italy, ISTAT, OECD, ISMEA). Our results support the existence of the regressive effect.

Suggested Citation

  • Cristiano PERUGINI, 2004. "Who Bears the Burden of Common Agricultural Price Policy? The Distributive Effects of Market Price Support in the Agricultural Sector," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 112(4), pages 471-493.
  • Handle: RePEc:vep:journl:y:2004:v:112:i:4:p:471-493

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    market price support; Engel’s law; common agricultural policy; regressive effects;

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy


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