Title: The Impact of Quota Rent and Supply Elasticity Estimates for EU Dairy Policy Evaluation: A Comparative Analysis
Citation: Agrarwirtschaft vol. 58 no. 5/6 p. 269-280
Publisher: Deutscher Fachverlag GmbH
Publication Year: 2009
JRC N°: JRC48471
ISSN: 0002-1121
URI: http://www.abisz.genios.de/r_fachpresse/daten/agw/20090720/200958269.html
Type: Articles in periodicals and books
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 help policy makers gain 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). This paper analyses how the economic supply components, as they are part of the three analysed key dairy models, affect milk output 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 cannot explain finally obtained model outcomes. Quota rents, supply responses, shifters and the demand side have to be integrated with each other.
JRC Directorate:Growth and Innovation

Files in This Item:
There are no files associated with this item.

Items in repository are protected by copyright, with all rights reserved, unless otherwise indicated.