Who Bears the Burden of Common Agricultural Price Policy? The Distributive Effects of Market Price Support in the Agricultural Sector

Cristiano Perugini

Rivista Internazionale di Scienze Sociali, 2004, vol. 112, issue 4, 471-493

Abstract: The EU Common Agricultural Policy has historically been articulated into public budget payments and price support measures. From the distributive viewpoint, while the former are financed through the usual fiscal policy mechanisms (largely progressive), the financing structure of market price support (burdened on the consumers of food products) envisages a possible income regressive effect (via Engel’s law). The objective of the paper is to investigate the existence and the size of this effect. To achieve this aim we combine data and information from different sources (Bank of Italy, ISTAT, OECD, ISMEA). Our results support the existence of the regressive effect.

Keywords: market price support; Engel’s law; common agricultural policy; regressive effects (search for similar items in EconPapers)
JEL-codes: D10 H23 Q18 (search for similar items in EconPapers)
Date: 2004
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