Suppression of agricultural subsidies in the Extremadura region: an applied general equilibrium analysis
نویسندگان
چکیده
In this paper an applied general equilibrium model for the Extremadura region is presented. Our aim is to show the importance of agricultural subsidies in this economy, that it is a distinctive characteristic of this region. To achieve this purpose, we analyse the effects of a supression of these subsidies, using different scenaries related to the labour market and tax compensation. Model parameters are mainly obtained from a Social Accounting Matrix built for this economy. The results clearly show the negative effects on important microeconomic variables (prices, activity levels or household welfare) and macroeconomic variables (unemployment rate). JEL codes: C68, D58, H30, Q19 * This paper has received the financial support provided by Generalitat de Catalunya (Red Temática en Economía Computacional XT02-0037). The second author also acknowledges Ministerio de Educación y Cultura grants SEC2000-0796 and SEC2000-0834.
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