ABSTRACT
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. It explores the use of the Common Agricultural Policy (CAP) market/budget model to analyse the ‘efficiency’ of various shifts in policy away from the base position. Individuals and their political representatives would be expected to view an economic policy in rough proportion to the effects it has on their own levels of real income or expenditures. On the recipient side of the policy, the number employed in agriculture, forestry and fisheries in each member-state of the Community was taken as an indicator of those groups directly affected by the CAP through price guarantees and the protective measures.
