ABSTRACT
In a variety of ways, the previous three chapters have reported the results of simulating the financial and economic effects of the CAP and some alternative policies applied to the agriculture of the EC. The first part of this chapter illustrates some ways in which such results can be used to provide deeper insights into the distributional effects of policy changes, by analysing the likely impact of policy moves on different sections of the population, and on farms of different sizes. Such an analysis recognises the social and political importance of distinguishing between groups affected in different ways according to the nature of their dependence on agriculture. The second part of the chapter concerns the use of the CAP market/budget model to analyse the ‘efficiency’ of various shifts in policy away from the base position.
