THE COMMON AGRICULTURAL POLICY IN MAIN PARTIAL EQUILIBRIUM MODELS

The paper reviews seven partial equilibrium global models used over the last 10 years to the analysis of the Common Agricultural Policy (ESIM, FAO-WFM, FAPRI-CARD, MISS, SPEL/EU, SWOPSIM and WATSIM). The discussion starts from the basic modelling assumptions, the data and parameters employed, by looking first at the common aspects of the models, and then at the unique characteristics of each model for simulating the effects of the CAP. Then the effectiveness of the modelling of five specific CAP tools is discussed; these are - direct price support, trade measures, supply management tools, partially "decoupled" payments, and voluntary schemes. It is argued that considerable improvements have taken place in the ability to capture the effects of changes in some of the main CAP tools, especially in relatively more recent efforts, and especially in terms of the explicit modelling of different measures. Further work is required on the quality of functional forms, the parameters and of the data employed in the models to complement the achievements already made in modelling agricultural and trade policy tools.