The impact of the modulation proposal in the MacSharry Plan for reform of the cereals regime

What is it about?

The paper presents a methodology that can be used to analyse the distributional implications of commodity-based support programmes which make differential provisions according to enterprise size. The approach is illustrated by means of an empirical analysis of the MacSharry proposal for the modulation of support in the cereals sector. The results of the study reveal that the proposal would operate to the advantage of the Mediterranean states and to the particular disadvantage of the UK, though the scale of the redistributive effects is shown to be small.

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