Ist die EU-Agrarpolitik ihr Geld wert?

Expenditure for the Common Agricultural Policy (CAP) has been in the centre of recent policy debate in the preparation of the Financial Framework for the period 2014–2020. Expenditure has generally been considered as the necessary costs for the achievement of the CAP objectives. The authors of this article argue that expenditure is not equal to the economic costs of a policy. Moreover, they claim that the main part of CAP expenditure is not well targeted for the achievement of the CAP’s objectives. The bulk of expenditure is for direct payments tied to agricultural land and, hence, contributes little if anything to CAP’s objectives as laid down in the treaties of the European Union or officially articulated elsewhere.     

International trade and agricultural development in developing countries: Significance of the Uruguay Round of GATT negotiations

Liberalization of world trade in agricultural products ranks high on the agenda of the Uruguay Round. After a period of more than six years, however, the negotiations have not been concluded. Nevertheless, an outcome seems to be in sight. The agreement will most likely not result in a move to freer trade. It seems that domestic policies will become even more regulative than in the past in an attempt to cut exportable surpluses and to ease trade tensions among the main exporting nations. This paper explores possible impacts of the GATT Round on agricultural development in developing countries. Agricultural development is more than only growth in agricultural production or productivity. However, it is argued in the paper that other variables which also indicate agricultural development are often closely correlated with growth in production and productivity. Trade in agricultural products is not always an engine for agricultural development. If internal divergences are not accounted for by appropriate domestic policies, trade may be even harmful to agricultural development. Hence, empirical research based on cross-country analysis does not provide a clear answer about the role of trade for development. Past policies in industrialized countries have most likely had a negative effect on developing countries as a group; however, the effects differ widely across countries. Liberalization policies in industrialized countries would not just reverse these negative effects for developing countries. Price reduction in industrialized countries may not result in the often-cited production decline in the short term. Present X-inefficiency in agriculture will be reduced by liberalization, leading to an outward shift of the supply curve. Hence, liberalization may not lead to higher world market prices for temperate-zone products in the short and medium term. Apart from this, empirical models differ widely in the price effects they predict. The expected outcome of the Uruguay Round – increased regulation of domestic policies – is likely both more negative for developing countries than past protectionist policies and worse than an overall liberalization. World market prices will increase, uncertainty and instability can be expected to grow, and food aid may become less available. There will be a need to react to these challenges with measures on the international and national level. Initiatives to deal with food crises in developing countries and to stimulate liberalization in developing countries should be considered. Finally, developing countries should be made aware that their own domestic policies have a much greater economic impact than policies in other countries, even if the latter are as protectionist as current agricultural policies in the industrialized world.     

Breakthrough in agricultural policy,or another policy failure?

Before the European summit in February 1988, EC agricultural policy was being criticized by almost all those affected. Farmers complained about low incomes and the lack of prospects, consumers and taxpayers about the high cost of agricultural support, politicians about spending commitments that could no longer be financed, agricultural economists about the waste of economic resources and trading partners about disruption of the world market. Have the decisions taken at the European summit set the Community on a fundamentally new course?     

Reform of the CAP : Impact on the Third World

The European Community is under pressure to reform the CAP, mainly due to internal financial reasons. Proposals have been put forward by the EC Commission that reform the CAP with respect to milk, oils and fats, and corngluten and citrus pellets. The authors look at the impact of these proposals on developing countries. They conclude that the effect will be to increase non-tariff barriers to trade and increase the cost of food production both in and outside the EC.     

Weltgetreidemarkt: Anhaltender Boom oder kurzfristige Spekulationsblase?

Zusammenfassung   Die Weltagrarm?rkte waren im letzten Jahr von stark steigenden Preisen gepr?gt. Wird diese Entwicklung durch fundamentale Faktoren gestützt oder handelt es sich um eine kurzfristige Erscheinung? Welche Rolle spielen dabei das Bev?lkerungswachstum und die Steigerung der Pro-Kopf-Einkommen? Was geht auf die Nachfrage nach biogenen Kraftstoffen zurück? Diese Fragen werden beispielhaft anhand des Weizenmarktes behandelt. Prof. Dr. Bernhard Brümmer, 39, ist Inhaber des Lehrstuhls für Landwirtschaftliche Marktlehre am Department für Agrar?konomie und Rurale Entwicklung der Universit?t G?ttingen; Prof. Dr. Dr. h.c. Ulrich Koester, 70, ist Emeritus des Lehrstuhls für Landwirtschaftliche Marktlehre an der Universit?t Kiel; Prof. Dr. Jens-Peter Loy, 44, lehrt in der Abteilung Marktlehre des Instituts für Agrar?konomie an der Universit?t Kiel und ist Inhaber des Lehrstuhls für Marktlehre an der CAU Kiel.     

Measuring income tax accrual quality

We develop and validate a measure of tax accrual quality. Tax accrual quality captures variation in the extent to which the income tax accrual maps into income tax-related cash flows, with lower variation indicating a higher quality tax accrual. Low tax accrual quality arises from (1) management estimation error and (2) financial reporting standards that lead to differences between income tax expense and income tax cash flows not captured by deferred tax assets and liabilities. We validate our tax accrual quality measure by showing it is associated with firm characteristics that capture both constructs and by demonstrating it predicts future tax-related restatements and internal control material weaknesses. We illustrate the importance of our measure by showing that investors view tax expense as more informative in firms with better tax accrual quality. Future researchers can use tax accrual quality to address questions related to estimation error in the income tax account.     

Decision-making problems of the council of agriculture ministers

Joint decisions each year on agricultural prices by the Council of Ministers of Agriculture are a requisite of the European Community’s Common Agricultural Policy. It is however more and more difficult to reach joint decisions on these prices. Divergencies of national aims and economic starting positions (in regard to growth, inflation, unemployment, balance of payments position) are often held responsible for this fact in the public discussion. While not questioning the relevance of these factors the present contribution focuses on the importance of institutional rules for the divergence of national interests.