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Redistributing Income Back to European Community Consumers and Taxpayers through the Common Agricultural Policy
Author(s) -
Bullock David S.
Publication year - 1992
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242990
Subject(s) - economics , welfare , agriculture , common agricultural policy , production (economics) , generalization , public economics , microeconomics , international economics , european union , market economy , ecology , mathematical analysis , mathematics , biology
A multiple‐policy‐instrument generalization of Gardner's surplus transformation curve analysis is applied to an empirical model of the EC wheat sector to compare welfare effects of policy change proposals. A production quota/support price combination is estimated as the most efficient means of making relatively small transfers from EC agriculture to consumers/taxpayers. A coresponsibility levy/support price combination is estimated as the most efficient means of making larger transfers. The importance of accounting for income transfer size, distortions in related markets, and the structure of markets when comparing welfare effects of policy change proposals is demonstrated.