IDEAS home Printed from https://ideas.repec.org/p/ags/aaea01/20677.html
   My bibliography  Save this paper

Interregional Analysis Of The Impacts Of Eliminating European Union Milk Production Quotas

Author

Listed:
  • Bouamra-Mechemache, Zohra
  • Chavas, Jean-Paul
  • Cox, Thomas L.
  • Requillart, Vincent

Abstract

An hedonic spatial equilibrium model of the European Union dairy sector is used to evaluate the interregional impacts of eliminating milk production quotas under a variety of domestic policy (intervention prices and domestic production/consumption subsidies) and trade policies (tariff rate quotas and export subsidies). The simulation results indicate that the removal of the EU milk production quotas is welfare improving both only with substantial liberalization of trade. Hence, production quota removal by itself is not a desirable policy alternative for either the EU or the world. Rather, policy reform should involve the joint consideration of domestic and trade policy instruments.

Suggested Citation

  • Bouamra-Mechemache, Zohra & Chavas, Jean-Paul & Cox, Thomas L. & Requillart, Vincent, 2001. "Interregional Analysis Of The Impacts Of Eliminating European Union Milk Production Quotas," 2001 Annual meeting, August 5-8, Chicago, IL 20677, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea01:20677
    DOI: 10.22004/ag.econ.20677
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/20677/files/sp01bo04.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.20677?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. James E. Anderson & J. Peter Neary, 1996. "A New Approach to Evaluating Trade Policy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 63(1), pages 107-125.
    2. Neary, J Peter, 1995. "Trade Liberalisation and Shadow Prices in the Presence of Tariffs and Quotas," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(3), pages 531-554, August.
    3. Luenberger, David G., 1992. "Benefit functions and duality," Journal of Mathematical Economics, Elsevier, vol. 21(5), pages 461-481.
    4. W. E. Diewert & A. H. Turunen-Red & A. D. Woodland, 1989. "Productivity- and Pareto-Improving Changes in Taxes and Tariffs," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 56(2), pages 199-215.
    5. Giancarlo Moschini & Paolo Sckokai, 1994. "Efficiency of Decoupled Farm Programs Under Distortionary Taxation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(3), pages 362-370.
    6. Jean‐Paul Chavas & Thomas L. Cox & Edward Jesse, 1998. "Spatial allocation and the shadow pricing of product characteristics," Agricultural Economics, International Association of Agricultural Economists, vol. 18(1), pages 1-19, January.
    7. David S. Bullock, 1992. "Redistributing Income Back to European Community Consumers and Taxpayers through the Common Agricultural Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(1), pages 59-67.
    8. Julian M. Alston & Brian H. Hurd, 1990. "Some Neglected Social Costs of Government Spending in Farm Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(1), pages 149-156.
    9. Anderson, James E & Neary, J Peter, 1992. "Trade Reform with Quotas, Partial Rent Retention, and Tariffs," Econometrica, Econometric Society, vol. 60(1), pages 57-76, January.
    10. Turunen-Red, Arja H. & Woodland, Alan D., 2000. "Multilateral policy reforms and quantity restrictions on trade," Journal of International Economics, Elsevier, vol. 52(1), pages 153-168, October.
    11. Takayama,Akira, 1985. "Mathematical Economics," Cambridge Books, Cambridge University Press, number 9780521314985, September.
    12. Browning, Edgar K, 1987. "On the Marginal Welfare Cost of Taxation," American Economic Review, American Economic Association, vol. 77(1), pages 11-23, March.
    13. Bruce Gardner, 1983. "Efficient Redistribution through Commodity Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(2), pages 225-234.
    14. Turunen-Red, Arja H & Woodland, Alan D, 1991. "Strict Pareto-Improving Multilateral Reforms of Tariffs," Econometrica, Econometric Society, vol. 59(4), pages 1127-1152, July.
    15. Harry de Gorter & Karl D. Meilke, 1989. "Efficiency of Alternative Policies for the EC's Common Agricultural Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(3), pages 592-603.
    16. Anderson, Richard K. & Takayama, Akira, 1979. "Comparative statics with discrete jumps in shift parameters, or, how to do economics on the saddle(-point)," Journal of Economic Theory, Elsevier, vol. 21(3), pages 491-509, December.
    17. Falvey, Rodney E., 1988. "Tariffs, quotas and piecemeal policy reform," Journal of International Economics, Elsevier, vol. 25(1-2), pages 177-183, August.
    18. Vousden,Neil, 1990. "The Economics of Trade Protection," Cambridge Books, Cambridge University Press, number 9780521346696, September.
    19. Gardner, Bruce L, 1987. "Causes of U.S. Farm Commodity Programs," Journal of Political Economy, University of Chicago Press, vol. 95(2), pages 290-310, April.
    20. Dixit, Avinash K, 1970. "On the Optimum Structure of Commodity Taxes," American Economic Review, American Economic Association, vol. 60(3), pages 295-301, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lukáš Čechura & Zdeňka Žáková Kroupová & Irena Benešová, 2021. "Productivity and Efficiency in European Milk Production: Can We Observe the Effects of Abolishing Milk Quotas?," Agriculture, MDPI, vol. 11(9), pages 1-21, August.
    2. Irena Benešová & Helena Řezbová & Luboš Smutka & Karel Tomšík & Adriana Laputková, 2015. "European Sugar Market - Impact of Quota System," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 63(6), pages 1825-1838.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jean‐Paul Chavas & Zohra Bouamra Mechemache, 2006. "The Economic Efficiency of Policy Reform and Partial Market Liberalization under Transaction Costs," Bulletin of Economic Research, Wiley Blackwell, vol. 58(3), pages 161-191, July.
    2. J. Peter Neary, 1998. "Pitfalls in the Theory of International Trade Policy: Concertina Reforms of Tariffs, and Subsidies to High‐Technology Industries," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(1), pages 187-206, March.
    3. Arja H. Turunen-Red & Alan D. Woodland, 1995. "International Trade Policy Reforms and their Simulation," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 131(III), pages 389-417, September.
    4. Ian W.H. Parry, 1999. "Agricultural Policies in the Presence of Distorting Taxes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 212-230.
    5. Alan Woodland & Arja Turunen-Red, 2000. "The Redistribution of Efficiency Gains: Transfers or Tariffs?," Econometric Society World Congress 2000 Contributed Papers 0987, Econometric Society.
    6. Turunen-Red, Arja H. & Woodland, Alan D., 2000. "Multilateral policy reforms and quantity restrictions on trade," Journal of International Economics, Elsevier, vol. 52(1), pages 153-168, October.
    7. Bullock, D. S. & Salhofer, K., 1998. "Measuring the social costs of suboptimal combinations of policy instruments: A general framework and an example," Agricultural Economics, Blackwell, vol. 18(3), pages 249-259, May.
    8. Alston, Julian M. & Smith, Vincent H. & Acquaye, Albert & Hosseini, Safdar, 1999. "Least-cost cheap-food policies: some implications of international food aid," Agricultural Economics, Blackwell, vol. 20(3), pages 191-201, May.
    9. Anderson, James E & Bannister, Geoffrey J & Neary, J Peter, 1995. "Domestic Distortions and International Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(1), pages 139-157, February.
    10. Pascalis Raimondos-Møller & Alan Woodland, 2014. "Steepest ascent tariff reform," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 55(1), pages 69-99, January.
    11. David S. Bullock & Klaus Salhofer & Jukka Kola, 1999. "The Normative Analysis of Agricultural Policy: A General Framework and Review," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 512-535, September.
    12. Jean-Paul Chavas & Zohra Mechemache, 2006. "Efficiency measurements and the gains from trade under transaction costs," Journal of Productivity Analysis, Springer, vol. 26(1), pages 67-85, August.
    13. Bullock, David S. & Salhofer, Klaus, 2003. "Judging agricultural policies: a survey," Agricultural Economics, Blackwell, vol. 28(3), pages 225-243, May.
    14. Harvey, David R., 2003. "Policy Dependency And Reform: Economic Gains Versus Political Pains," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25865, International Association of Agricultural Economists.
    15. James E. Anderson & Will Martin, 2011. "Costs of Taxation and Benefits of Public Goods with Multiple Taxes and Goods," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(2), pages 289-309, April.
    16. James E. Anderson & J. Peter Neary, 2004. "Welfare vs. Market Access: The Implications of Tariff Structure for Tariff Reform," NBER Working Papers 10730, National Bureau of Economic Research, Inc.
    17. James E. Anderson & J. Peter Neary, 1996. "A New Approach to Evaluating Trade Policy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 63(1), pages 107-125.
    18. Raimondos-Moller, Pascalis & Woodland, Alan D., 2006. "Non-preferential trading clubs," Journal of International Economics, Elsevier, vol. 68(1), pages 79-91, January.
    19. baharumshah, ahmad, 1992. "Income Redistribution Through Commodity Programmes and the Marginal Welfare Cost of Taxation," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 25(June), pages 47-61.
    20. Can Erbil, 2004. "Trade Taxes Are Expensive," International Trade 0409002, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea01:20677. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.