 EC price harmonization: A macroeconomic approachP. M. Schmitz European Review of Agricultural Economics, 1979, vol. 6, issue 2, 165-190 Abstract: The results of this study suggest that an EC price harmonization at the ‘common’ level should be rejected from the EC allocation point of view; however, harmonization at a lower common price level could provide allocative gains. The merits of price harmonization need to be judged differently by the member countries as long as the system of common financing induces real income transfer flows between the partners. When allocative and income transfer effects are combined, France gains from price harmonization, but the United Kingdom and the Federal Republic of Germany lose. Harmonization would tend to restore the balance of payments in the case of the United Kingdom and the Federal Republic of Germany but would lead to increasing cost of living in the devaluing countries, especially in the United Kingdom and Italy. The elimination of MCAs would not necessarily decrease the expenditure of the agricultural funds. Date: 1979 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:oup:erevae:v:6:y:1979:i:2:p:165-190. Ordering information: This journal article can be ordered from Access Statistics for this article European Review of Agricultural Economics is currently edited by Timothy Richards, Salvatore Di Falco, Céline Nauges and Vincenzina Caputo More articles in European Review of Agricultural Economics from Oxford University Press and the European Agricultural and Applied Economics Publications Foundation Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC. |
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