Analysis of the Impact of the Common Agricultural Policy in regional economies at NUTS3 level in 2007 using a Linear General Equilibrium Model

Abstract

This presentation suggests a spatial impact analysis for Nomenclature of Territorial Units for Statistics 3 (NUTS 3) regions with the objective of capturing local rural/urban effects of the Common Agricultural Policy (CAP). We use a set of rural-urban SAMs for twelve NUTS 3 regions distributed across the EU. With the help of CAP's Pillar I and Pillar II information at NUTS3 level, the SAMs are further used in a linear Computable General Equilibrium model for simple policy simulations. Finally, we design an experiment consisting in exogenously shocking the demand of any combination of endogenous activities in the original SAMs, in order to capture the impact of the Common Agricultural Policy (CAP) in each NUTS3 for 2007.