An ex-ante analysis of distributional effects of the CAP on western German farm incomes

Andre Deppermann, Harald Grethe and Frank Offermann

No 99428, 122nd Seminar, February 17-18, 2011, Ancona, Italy from European Association of Agricultural Economists

Abstract: This study is concerned with measuring impacts of the Common Agricultural Policy (CAP) on farm income distribution of western Germany. Not only the sheer contribution of market price support and direct payments as a proportion of income is taken into account, but also the impact of support on production incentives. For this purpose, we apply a modelling system consisting of a partial equilibrium model and a programming model. Based on a comparison of Gini coefficients and a decomposition of overall inequality effects we conclude that liberalization of the agricultural sector leads to a more unequal distribution of family farm income in relative terms, whereas a liberalized market provides a more equal situation in absolute terms.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Pages: 17
Date: 2011-02-10
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaa122:99428

DOI: 10.22004/ag.econ.99428

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