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GTAP Resource #1671

"Abolition of Raw Milk Quota in the European Union: A CGE Analysis at the Member Country Level"
by Lips, Markus and Peter Rieder


Abstract
This paper discusses a generic approach to implementing production quotas in an applied general equilibrium framework. The quota rent is interpreted as additional primary factor payments. We analyse the abolition of the raw milk quota and the elimination of export subsidies for dairy products in the European Union at a member country level. The raw milk output increases in Denmark, Ireland, Italy, Luxembourg, the Netherlands and Spain, while it declines in Germany, Greece, Portugal and Sweden. The EU-wide effect for the raw milk production is an output increase of 3% and a price decline of 22%. To assess the robustness of the critical assumption about the raw milk quota rent we apply Arndt and Pearson’s Systematic Sensitivity Analysis.


Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Published
By/In: Journal of Agricultural Economics, 56(1), pp 1-17
Date: 2005
Version:
Created: Lips, M. (3/23/2005)
Updated: Dimaranan, B. (3/23/2005)
Visits: 3,062
- Agricultural policies
- European Union


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