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Evaluating the Market and Welfare Impacts of Agricultural Policies in Developed Countries: Comparison of Partial and General Equilibrium Measures

  • Gohin, Alexandre
  • Moschini, GianCarlo

We revisit the question of choosing partial equilibrium or general equilibrium modeling in applied policy analysis in the context of evaluating the effects of a complete phase-out of the Common Agricultural Policy (CAP) of the European Union. We compare the results of three modelsï¾—two three-sector general equilibrium models (one with an additional major distortion in the nonagricultural sector) and a two-sector partial equilibrium model. We find that the market effects of a complete phase-out of the CAP are quite comparable across these models. On the other hand, the measured welfare impacts may depend on the modeling choice.

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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 12727.

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Date of creation: 01 Jul 2006
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Publication status: Published in Review of Agricultural Economics, Summer 2006, vol. 28 no. 2, pp. 195-211
Handle: RePEc:isu:genres:12727
Contact details of provider: Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
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