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The CAP and the Unequal Public Support to European Agriculture

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  • Bureau, Jean-Christophe

Abstract

In order to measure the effect of public support on production, aggregate measures are constructed as effective rates of protection, including all government interventions that affect supply. These measures are constructed considering effective protection rates as a superlative index number, which requires an econometric estimation of the price aggregator functions. This makes it possible to measure the effect of public intervention of IO European countries, between 1973 and 1989. The unequal public support between EC countries is due to output price differences under the CAP regime. It is also caused by a very unbalanced protection and support across commodities.

Suggested Citation

  • Bureau, Jean-Christophe, 1997. "The CAP and the Unequal Public Support to European Agriculture," 1997 Occasional Paper Series No. 7 198057, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaaeo7:198057
    DOI: 10.22004/ag.econ.198057
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    File URL: http://ageconsearch.umn.edu/record/198057/files/agecon-occpapers-1997-019_1_.pdf
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    References listed on IDEAS

    as
    1. H. G. Grubel & P. J. Lloyd, 1971. "Factor Substitution and Effective Tariff Rates," Review of Economic Studies, Oxford University Press, vol. 38(1), pages 95-103.
    2. J. Clark Leith, 1970. "Reply," The Quarterly Journal of Economics, Oxford University Press, vol. 84(1), pages 158-160.
    3. Bhagwati, Jagdish N. & Srinivasan, T. N., 1973. "The general equilibrium theory of effective protection and resource allocation," Journal of International Economics, Elsevier, vol. 3(3), pages 259-281, August.
    4. Vousden,Neil, 1990. "The Economics of Trade Protection," Cambridge Books, Cambridge University Press, number 9780521346696, December.
    5. W. M. Corden, 1966. "The Structure of a Tariff System and the Effective Protective Rate," Journal of Political Economy, University of Chicago Press, vol. 74, pages 221-221.
    6. Diewert, Walter E & Wales, Terence J, 1987. "Flexible Functional Forms and Global Curvature Conditions," Econometrica, Econometric Society, vol. 55(1), pages 43-68, January.
    7. Bruno, Michael, 1978. "Duality, Intermediate Inputs and Value-Added," Histoy of Economic Thought Chapters, in: Fuss, Melvyn & McFadden, Daniel (ed.), Production Economics: A Dual Approach to Theory and Applications, volume 2, chapter 1, McMaster University Archive for the History of Economic Thought.
    8. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
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