Modelling direct payments to agriculture in a CGE Framework - analysis of the Czech Republic

Zuzana Křístková and Andrea Habrychová
Additional contact information
Zuzana Křístková: Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Prague, Czech Republic
Andrea Habrychová: Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Prague, Czech Republic

Agricultural Economics, 2011, vol. 57, issue 11, 517-528

Abstract: The paper deals with modelling of the direct payments subsidies to agriculture and their impact on the economy of the Czech Republic. With the use of the general equilibrium model, scenarios concerning an increase of subsidies reaching 100% of the national envelope and a complete removal of both SAPS and Top-Up payments are applied. The results show that if the full amount of subsidies is granted, the value added in agriculture and the connected sectors is stimulated, with a positive effect on the total GDP. However, if the direct payments are completely removed, negative effects on employment can be expected, suggesting that the direct payments play a positive role in the economy. The paper further points out that the effects of direct payments on the incomes of farmer households are limited, suggesting that the farmers' living standard should be supported by other policy instruments than the direct payments

Keywords: direct payments; general equilibrium model; farmer households; Czech Republic (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://agricecon.agriculturejournals.cz/doi/10.17221/57/2010-AGRICECON.html (text/html)
http://agricecon.agriculturejournals.cz/doi/10.17221/57/2010-AGRICECON.pdf (application/pdf)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:caa:jnlage:v:57:y:2011:i:11:id:57-2010-agricecon

DOI: 10.17221/57/2010-AGRICECON

Access Statistics for this article

Agricultural Economics is currently edited by Ing. Zdeňka Náglová Ph.D.

More articles in Agricultural Economics from Czech Academy of Agricultural Sciences
Bibliographic data for series maintained by Ivo Andrle ().