Arbeitspapier

Payment decoupling and the intra-European calf trade

The 2003 reforms of the Common Agricultural policy of the European Union introduced decoupled income transfers as the most prominent policy instrument. However, member states were given substantial discretion over the degree and timing of the reform implementation. As a result, different implementation schemes coexist within the EU, keeping certain parts of the income support coupled to current production levels. This coexistence leads to distortions of production incentives, factor misallocations, and artificial trade flows. Here, we examine these effects in the beef sector where full decoupling was not obligatory for all member states. Based on a cost minimization framework, we derive a sector-specific trade model with heterogeneous firms and quality differences. The model is used to examine the effects of different implementation schemes on intra-European calf trade. Empirical results confirm that the expected distortions to trade flows occured, violating the fundamental CAP principle of Market Unity.

Sprache
Englisch

Erschienen in
Series: Diskussionsbeitrag ; No. 1008

Klassifikation
Wirtschaft
Trade Policy; International Trade Organizations
Empirical Studies of Trade
Agriculture in International Trade
Thema
Partial Decoupling
Intra-European Calf Trade
Gravity Model
Heterogeneous Firms Trade Model
EU-Agrarpolitik
Agrarreform
Rindfleisch
EU-Binnenhandel
Gravitationsmodell
Schätzung
EU-Staaten

Ereignis
Geistige Schöpfung
(wer)
Prehn, Sören
Brümmer, Bernhard
Thompson, Stanley R.
Ereignis
Veröffentlichung
(wer)
Georg-August-Universität Göttingen, Department für Agrarökonomie und Rurale Entwicklung (DARE)
(wo)
Göttingen
(wann)
2010

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Prehn, Sören
  • Brümmer, Bernhard
  • Thompson, Stanley R.
  • Georg-August-Universität Göttingen, Department für Agrarökonomie und Rurale Entwicklung (DARE)

Entstanden

  • 2010

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