THE 'MILK QUOTAS RENT PUZZLE' IN THE EU: ECONOMIC SIGNIFICANCE, REVIEW, AND POLICY RELEVANCE

Roelof A. Jongeneel and Axel Tonini

No 44796, 109th Seminar, November 20-21, 2008, Viterbo, Italy from European Association of Agricultural Economists

Abstract: In the so-called Common Agricultural Policy (CAP) 'Health Check' the European Commission has recently proposed gradual transitional measures to allow a 'soft landing' of the milk sector to quota expiry. The aim of this paper is to support policy makers to get better insights in the implications of some of the most important economic assumptions and empirical choices made in partial equilibrium models focusing on dairy. Three partial equilibrium models are considered: the Agricultural Member states MODeling (AGMEMOD) model, the Common Agricultural Policy SIMulation (CAPSIM) model, and the European Dairy Industry Model (EDIM). The paper analyzes how the most important economic supply components, as they are part of the three key dairy models, affect milk production projections. A main conclusion is that the evaluation of the contribution of a study should not be based on one single characteristic (such as quota rents, supply responses). One isolated characteristic is not able to explain finally obtained model outcomes. Quota rents, supply responses, shifters and the demand side have to be integrated with each other.

Keywords: Agricultural and Food Policy; Political Economy; Research Methods/Statistical Methods (search for similar items in EconPapers)
Date: 2008-11-12
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/44796/files/2.1.3_Tonini.pdf (application/pdf)

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:ags:eaa109:44796

DOI: 10.22004/ag.econ.44796

Access Statistics for this paper

More papers in 109th Seminar, November 20-21, 2008, Viterbo, Italy from European Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().