Open Access BASE2008

The Logic of the CAP : Politics or Economics?

Henning, Christian H.C.A; Struve, Carsten; Brockmeier, Martina

Open Access

Abstract

This paper derives an applied general political economy model incorporating a model of political decision making into a computable general economic equilibrium model. Political decision making among a set of legislators is modeled via a mean voter decision rule derived from a modified non cooperative legislative bargaining game of a Baron Ferejohn type. The model allows a simultaneous analysis of political and economic factors determining policy outcome and is applied to simulate future Common Agricultural Policy (CAP) under various political and economic scenarios.

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