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Revisiting Decoupled Agricultural Policies in CGE frameworks: Theory and Empirics

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  • Ferrari, Emanuele
  • Boulanger, Pierre
  • Gonzalez-Mellado, Aida
  • McDonald, Scott

Abstract

The Common Agricultural Policy (CAP) is moving away from coupled payments towards an increasing emphasis on decoupled payments. However current CGE models to study effects of decoupled payments remain limited. This paper introduces the application of a CGE model framework for a comparative analysis of possible effects caused by coupled and decoupled support on agricultural and food sectors in an economy. The CGE model used is the STAGE_AGR which is an extension of the STAGE model containing equations that permit modellers to introduce different system of decoupled payment representation. We have taken as empirical example the case of Ireland for modelling agricultural payments either as fully or partially decoupled.

Suggested Citation

  • Ferrari, Emanuele & Boulanger, Pierre & Gonzalez-Mellado, Aida & McDonald, Scott, 2014. "Revisiting Decoupled Agricultural Policies in CGE frameworks: Theory and Empirics," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170397, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea14:170397
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    References listed on IDEAS

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    1. Jerzy Michalek & Pavel Ciaian & d’Artis Kancs, 2014. "Capitalization of the Single Payment Scheme into Land Value: Generalized Propensity Score Evidence from the European Union," Land Economics, University of Wisconsin Press, vol. 90(2), pages 260-289.
    2. Oliver Balkhausen & Martin Banse & Harald Grethe, 2008. "Modelling CAP Decoupling in the EU: A Comparison of Selected Simulation Models and Results," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(1), pages 57-71, February.
    3. Alexandre Gohin, 2006. "Assessing CAP Reform: Sensitivity of Modelling Decoupled Policies," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(3), pages 415-440.
    4. Sherman Robinson & Andrea Cattaneo & Moataz El-Said, 2001. "Updating and Estimating a Social Accounting Matrix Using Cross Entropy Methods," Economic Systems Research, Taylor & Francis Journals, vol. 13(1), pages 47-64.
    5. Pavel Ciaian & d’Artis Kancs & Johan Swinnen, 2010. "EU Land Markets and the Common Agricultural Policy," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 53(3), pages 1-31.
    6. Philippidis, George, 2010. "Measuring the impacts of the CAP in Spain: A CGE model approach," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 0(Number 01), pages 1-21.
    7. Ferrari, Emanuele & Boulanger, Pierre, 2014. "A regional agricultural SAM for Ireland 2007," MPRA Paper 56270, University Library of Munich, Germany.
    8. Miller, Ana Corina & Matthews, Alan & Boysen, Ole & Donnellan, Trevor & O'Donoghue, Cathal, 2011. "Measuring the impact of trade policy reform in Ireland: A disaggregated analysis of household impacts," 122nd Seminar, February 17-18, 2011, Ancona, Italy 99598, European Association of Agricultural Economists.
    9. Dixon, Janine & Matthews, Alan, 2006. "Impact of the 2003 Mid-Term Review of the Common Agricultural Policy," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2006(1-Spring), pages 1-17.
    10. Gelan, Ayele & Schwarz, Gerald, 2008. "The Effects Of Single Farm Payments On Scottish Agriculture: A Cge Modeling Approach," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6470, European Association of Agricultural Economists.
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    Keywords

    Agricultural and Food Policy;

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