The Effect of EU's Common Agricultural Policy at the Regional Level: Distribution, Development and Revenue Stabilisation

The aim of this paper is threefold. Firstly, we investigate the regional distribution of support of EU’s Common Agricultural Policy (CAP). Secondly, we employ structural data of the regions to calculate average farm revenue and to show how support and income has developed over time. Thirdly, we analyse the stabilisation effect generated by these transfers. This is investigated for the market price support, the first pillar payments and one agrienvironmental program. New contributions to the literature are the use of community data and the inclusion of a second-pillar program. The results show that there is an overall stabilisation effect of the EU’s CAP but this effect is not equal for all regions.