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ChallengesforModellingCAP2014–2020withinCGEModelFramework
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Rimmer(2010)revealedthatthebestwaytomimiccrisisandeconomiclossesin
theeconomy(avoidingunrealisticallyhighpricesandrealdepreciationofdomestic
currency)wastoassumeexcesscapacityintheaffectedindustries.Inasimilarway,
otherstudiesonnaturaldisasterssuchasdrought,modelledtheno-rainaccident
asanexcesscapacityindownstreamprocessingsectorsaffectedbydroughtasthat
modelledfarmoutputpriceshikeandeconomy-wideeffectsoftheeventsaremore
realisticallyrepresented-seee.g.WittwerandGriffith(2011);Horridge,Madden,
Wittwer(2005)orKuikandGerlagh(2005).
Hypothetically,thecompensationtofarmerscouldbeimplementedanalogicallyto
counter-cyclicalpayments(i.e.thosepaidunderFarmBillintheUSA).Thiscategory
iswelldefinedwithinProducerSupportEstimate-PSE(OECD)classificationasE1
-CounterCyclicalPayments(CCP).ThereareseveralstudiesonmodellingCCPs
withinCGEframeworkavailablefromtheUSliterature(e.g.HansonandSomwaru,
2003),whichcanprovidetheinsightintothemodellingofthosemeasuresinthe
EU.ThereviewofthatliteratureshowsthatCCPsareusuallymoredistortiveinterms
oftheirimpactonfarmcapitalandfarmoutputthanSFPs(Mary2013a).
3.2.Newco-operationmeasures
Co-operation(Article36)isanewmeasureinCAP2014-2020.Supportunder
thismeasureisgrantedinordertopromotevariousformsofco-operationinvolving
atleasttwoentities,andinparticular(EC2013b):
a)co-operationapproachesamongdifferentactorsintheagricultureandfood
chain,theforestrysectorandactorswhocontributetoachievingtheobjectives
andprioritiesofruraldevelopmentpolicy,includingproducergroups,coopera-
tivesandinter-branchorganisations;
b)thecreationofclustersandnetworks;
c)theestablishmentandoperationofoperationalgroupsoftheEuropeanIn-
novationPartnershipforagriculturalproductivityandsustainability.
TheproblemwithmodellingthistypeofmeasurewithinCGEframeworkis
thatitcoversextremelydiverseactionsandthereisavastvarietyofeligiblecosts
supportedunderthismeasure-frombusinessplans,strategies,torunningcosts
ofco-operation,directcostsofspecificprojectslinkedtotheimplementationof
abusinessplan,amongotherthings.Hence,probablythemostconvincingwayto
modelthismeasurewouldbetotreatitasutransferofknowledge”asitisanultimate
goalofthismeasureratherthangroupthemeasuresintosomesubcategories.The
utransferofknowledge”couldbemeasuredasconcentrationofR&Dincertain
regionsandbelinkedtoeconomicgrowthaccordingtothetheoryofendogenous
growth(Lucas1988;Romer1990).
WieśiRolnictwo4(173)/2016
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