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Abstract

A political economy model is developed to evaluate preferences of politicians of EU member states for agricultural protection within the Common Agricultural Policy (CAP). The model draws on Down's economic theory of democracy as particularly furtered by Swinnen and de Goner. Inter-country transfer of income modify optimal policies of individual member states. Net contributors to the CAP prefer reduction of common intervention prices relative to 'what they would have opted for without inter-country transfers. Politicians of net contributors to the CAP prefer higher level of agricultural protection inside the EU than they would have prefered outside the CAP. The accession of Central and East European countries into the EU will increase politically optimal level of protection of politicians of Central and East European countries while decrease that of politicians of current EU members.

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