Payment decoupling and intra-European calf trade
研究了2003年CAP改革中支付脱钩的不同实施方式如何扭曲欧洲内部犊牛贸易，发现不同方案导致生产激励扭曲和贸易流异常。
The 2003 CAP reform introduced decoupled income transfers as a prominent policy instrument. However, member states were given discretion over the degree and timing of the reform implementation. As a result, different implementation schemes coexist, keeping certain parts of the income support coupled. This coexistence leads to distortions of production incentives, factor misallocations and artificial trade flows. Here, we examine these effects in the beef sector where full decoupling was not obligatory. We derive a sector-specific trade model to examine the effects of different implementation schemes on intra-European calf trade. Empirical results confirm that trade flow distortions occurred.