MACROECONOMIC CONSEQUENCES OF A COMMON AGRICULTURAL POLICY BUDGET REDUCTION FOR THE CZECH ECONOMY – A GENERAL EQUILIBRIUM APPROACH

• Authors: Zuzana Kristková
• Languages of publication: EN

Abstracts

EN

The objective of this paper is to quantify the impact of selected scenarios of a Common Agricultural Policy (CAP) budget reduction on the macroeconomic equilibrium of the Czech economy with the use of a dynamic general equilibrium model. The findings show that in the short term, a reduction in direct payments (1st pillar) is more harmful for the economy than the removal of investment subsidies (2nd pillar); this is completely reversed in the long term, in which the removal of investment subsidies leads to a considerably stronger decline in economic growth.

Keywords

EN

CAP; EU; EUROPEAN UNION; BUDGET; GDP; CZECH REPUBLIC; MACROECONOMICS; AGRICULTURAL POLICY

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2011
• Volume: 59
• Issue: 8
• Pages: 802 – 822

Contributors

author

Zuzana Kristková

• Česká zemědělská univerzita v Praze, Fakulta ekonomie a manažmentu, Katedra ekonomie, Kamycká 129, 165 21 Praha 6, Czech Republic,