Who Bears the Burden of Common Agricultural Price Policy? The Distributive Effects of Market Price Support in the Agricultural Sector

digital

Article

Magazine

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI

Fascicle

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI - 2004 - 4

Title

Who Bears the Burden of Common Agricultural Price Policy? The Distributive Effects of Market Price Support in the Agricultural Sector

Author

Cristiano Perugini

Publisher

Vita e Pensiero

Format

Article |

Pdf

Online from

09-2017

Issn

0035-676X (print) | 1827-7918 (digital)

€ 6.00

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Description

The EU Common Agricultural Policy has historically been articulated into public budget payments and price support measures. From the distributive viewpoint, while the former are financed through the usual fiscal policy mechanisms (largely progressive), the financing structure of market price support (burdened on the consumers of food products) envisages a possible income regressive effect (via Engel’s law). The objective of the paper is to investigate the existence and the size of this effect. To achieve this aim we combine data and information from different sources (Bank of Italy, ISTAT, OECD, ISMEA). Our results support the existence of the regressive effect.