Farmers Rejoice as EU Scraps Costly Agricultural Subsidies, Boosting Welfare
The article discusses how agricultural policies in developed countries, like the European Union's Common Agricultural Policy (CAP), impact markets and welfare. By comparing different modeling techniques, researchers found that when the CAP is completely phased out, market effects are similar across models. However, the welfare impacts can vary depending on whether a general equilibrium model (which considers multiple sectors of the economy) or a partial equilibrium model (focused on a specific sector) is used. Overall, the choice of modeling method can influence how the effects of policy changes are measured.