Efficiency grounds and welfare effects in decoupling farm support. Insights from an AGE model of the Italian economy

Barbara Cavalletti and Benedetto Rocchi ()

International Journal of Sustainable Development, 2006, vol. 9, issue 2, 106-121

Abstract: This paper investigates both efficiency and redistributive effects of the recent reform of Common Agricultural Policy in Italy. A general equilibrium model has been calibrated on a social accounting matrix of the Italian economy, adapted to represent the distribution of agricultural income between households. In simulation results the decoupling of farm support proves to be a welfare-improving policy. Moreover, this welfare effect is enhanced by redistributing the support towards low-income agricultural households. In terms of possible policy implications, simulation results suggest that redistributive effects in decoupling farm support may be a crucial aspect for the allocation of the EU agricultural budget.

Keywords: applied general equilibrium analysis; common agricultural policy; CAP; efficiency analysis; farm support schemes; income redistribution; SAM-based models; Italy; sustainable development; welfare effects; social accounting; simulation; budget allocation; welfare improvement; sustainable management. (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.inderscience.com/link.php?id=11636 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijsusd:v:9:y:2006:i:2:p:106-121

Access Statistics for this article

More articles in International Journal of Sustainable Development from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().