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The Logic of the CAP: Politics or Economics?

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2008-11-02
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2017-09-07
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This paper derives an applied general political economy model incorporating a model of political decision making into a computable general economic equilibrium model. Political decision making among a set of legislators is modeled via a mean voter decision rule derived from a modified non cooperative legislative bargaining game of a Baron Ferejohn type. The model allows a simultaneous analysis of political and economic factors determining policy outcome and is applied to simulate future Common Agricultural Policy (CAP) under various political and economic scenarios.
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Henning, Christian H.C.A.; Struve, Carsten; Brockmeier, Martina. 2008. The Logic of the CAP: Politics or Economics?. Agricultural Distortions Working Paper;77. © World Bank. http://hdl.handle.net/10986/28181 License: CC BY 3.0 IGO.
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