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Abstract
An integrated policy evaluation tool is proposed for assessing the effects of agricultural policy
measures using all the information available at farm level. The tool combines the positive
mathematical programming methodology with the cluster analysis technique by using the same panel
of data. The PMP model proposed here allows to measure the effects of policy in term of agricultural
supply responses including output market price variations. The novel procedure by which the PMP
model is articulated permits to recover the set of farm level demand functions for agricultural
products and the cost function characterizing the given sample of farms. Cluster analysis is useful for
better appreciating the behaviour of farms before and after the policy scenario analysis by
considering the transfers of farms among clusters. A decoupling scenario assessment presents the
responses that the integrated tool can provide for evaluating agricultural policy instruments.