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THE COMMON AGRICULTURAL POLICY IN MULTISECTORAL MODELS

Pasquale De Muro () and Luca Salvatici ()

No 14804, Working Papers from National Institute of Agricultural Economics, Italy INEA, Osservatorio Sulle Politiche Agricole dell'UE

Abstract: The paper reviews the multisectoral models used in the last 10 years to analyse the effects of the Common Agricultural Policy. It begins with a presentation of the theoretical structure of computable general equilibrium models, including both single-region and multi-region models. In this respect, the paper deals with the questions of disaggregation of commodities, households, regions and factors of production, as well as the issues of parameter specification and model closure. The paper then turns to the problems of modelling policies which are included in the present CAP. Firstly, there is the issue of the linkages between institutional and market prices. Secondly, there is the issue of decoupled or semi-decoupled direct payments. Thirdly, there are those related to monitoring the effects of the implementation of Uruguay Round Agreement commitments. Fourthly, there are the questions on the modelling of different policy instruments either related to the use of output, or input. The paper closes with an appraisal of the state of the art and recommends directions for future research, data needs and modelling efforts on the CAP.

Keywords: Agricultural and Food Policy; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Date: 2001
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