The inability of European institutions to reform the common agricultural policy is a landmark case of political failure. The CAP has led to several policy failures. It helps mainly the well-off farmers in a very wasteful way; it provides excessive incentives for non-competitive primary...

[eng] Production theory under rationing : the case of milk quotas in the EC. . The concept of virtual or shadow prices associated with constrained netputs is used to derive the comparative statics of supply and derived demand response under rationing from producer behaviour before rationing....