Economic theory and econometric evidence support the thesis that the displacement of government expenditures on public goods by subsidies to private goods inhibits the performance of the farm sector. This paper presents an analysis of the influence of the mix of expenditures related to...

After protracted negotiations, the EC Ministers of Agriculture agreed on a reform of the Common Agricultural Policy on July 1st. Will this reform solve the fundamental problems plaguing the common agricultural market? Is it compatible with the GATT?

The recent reform of the EC's Common Agricultural Policy is likely to be only the beginning of the adjustments which will be necessary in the near future. Accession applications by various EFTA countries are pending. At the same time Eastern Europe desperately needs assistance from Western...