The adoption effect of Common agricultural policy of the European union at development of the czech economy

Abstract

The objective of this paper is to demonstrate some economywide effects of the adoption of Common Agricultural Policy. The general equilibrium approach is applied. The model is designed as a static computable general equilibrium one. The model structure reflects basic neoclassical assumption, i.e. producers maximize their profit and consumers maximize utility while the government wishes to balance its budget. The scenarios follow the debate about the extent of CAP available for candidate countries. Selected macro and sectoral economic indicators are used to assess the magnitude of scenarios impacts on the national economy. Model simulations indicate that positive aspects of accession prevail over negative ones in the most respects.common agricultural policy, EU enlargement, general equilibrium model, agrarian sector