Since the seminal work of Adam Smith, markets have been considered an efficienttool for co-ordinating the behaviour of economic agents. The basic characteristicof a market economy is that the complex system of interaction amongindividuals is not centrally coordinated. Under the assumption of...

Since the seminal work of Adam Smith, markets have been considered an efficient tool for co-ordinating the behaviour of economic agents. The basic characteristic of a market economy is that the complex system of interaction among individuals is not centrally coordinated. Under the assumption of...

The Common Agricultural Policy is modelled as a club good providing the European Union (EU) farmer with financial benefits. We build an economic model which explains how much farmers in individual EU countries invest in rent-seeking activities in order to test for free-riding behaviour on...

This paper aims to analyse the impact of changes in the monetary policy and the exchange rate on agricultural supply, prices and exports. The methodology used is based on the multivariate cointegration approach. Ten variables are considered: interest and exchange rates, money supply, inflation,...

We have employed a simple model to analyse market regulation in a situation with multifunctional agricultural production, i.e., a public good produced jointly with a private good, and where there is imperfect competition in processing. We have analysed the impact on welfare of two archetype...

The reform of the CAP in 1999, with extensive revisions in 2003 (Council regulation 1782/2003), was constructed around three central ideas: decoupling, cross-compliance of payments, and modulation. Decoupling, which is specifically analysed in this article, is intended to eliminate all aid...

Low and variable farm income has been a main rationale for heavy government intervention in agricultural markets and income transfers to farmers whether in Europe in response to disruptive agricultural imports and low world prices at the end of the 19th century or in the US in response to the...

Important changes took place in agricultural policies in Europe in the 19th and 20th century. The dramatic nature of the changes are illustrated by two years, a century apart: 1860 and 1960. In the 1860s European nations agree on a series of trade agreements which spread free trade across the...

In this paper, we analyze the simultaneous regulation of several goods produced on agricultural land such as environmental amenities and crops. This analysis is conducted using a general two goods model where all agricultural land is used for production. The regulation authority can regulate...

The paper attempts to evaluate, on the basis of two scenarios (moderate and radical), the effects of CAP reforming compared to the situation of current CAP scenario and its effects upon welfare. Direct payments for the large farms, some of them operating on thousands of hectares, cannot...