The CAP and the Unequal Public Support to European Agriculture
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In order to measure the effect of public support on production, aggregate measures are
constructed as effective rates of protection, including all government interventions that affect supply. These
measures are constructed considering effective protection rates as a superlative index number, which
requires an econometric estimation of the price aggregator functions. This makes it possible to measure the
effect of public intervention of IO European countries, between 1973 and 1989. The unequal public
support between EC countries is due to output price differences under the CAP regime. It is also caused by
a very unbalanced protection and support across commodities.