Modelling the Common Agricultural Policy with the Modular Agricultural GeNeral Equilibrium Tool (MAGNET): Effects of the 2014-2020 CAP financial agreement on welfare, trade, factor and product markets

Boulanger, P., Philippidis, G. (2014) Modelling the Common Agricultural Policy with the Modular Agricultural GeNeral Equilibrium Tool (MAGNET): Effects of the 2014-2020 CAP financial agreement on welfare, trade, factor and product markets, European Commission, JRC IPTS, JRC85874

This JRC report presents methodological development of the Modular Applied GeNeral Equilibrium Tool (MAGNET), a global computable general equilibrium (CGE) model, for representing the Common Agricultural Policy (CAP). Using original data on European Union (EU) domestic support, it examines some likely macroeconomic effects of the expected CAP budget over the period 2014-2020. Results suggest that agreed budget cuts, in constant price, have limited impacts on EU and world markets, given the broadly non-distortive representation of present CAP policy.