An ex-ante analysis of distributional effects of the CAP on western German farm incomes

This study is concerned with measuring impacts of the Common Agricultural Policy (CAP) on farm income distribution of western Germany. Not only the sheer contribution of market price support and direct payments as a proportion of income is taken into account, but also the impact of support on production incentives. For this purpose, we apply a modelling system consisting of a partial equilibrium model and a programming model. Based on a comparison of Gini coefficients and a decomposition of overall inequality effects we conclude that liberalization of the agricultural sector leads to a more unequal distribution of family farm income in relative terms, whereas a liberalized market provides a more equal situation in absolute terms.

Issue Date:
Feb 10 2011
Publication Type:
Conference Paper/ Presentation
Record Identifier:
PURL Identifier:
Total Pages:
JEL Codes:
Q11; Q12; Q18; C54; C6; D31

 Record created 2017-04-01, last modified 2018-01-22

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