| This paper focuses on estimation of distributional economic welfare effects of the adoption of the CAP on different groups of Romanian households. The calculations of welfare effects are based on 1999 household data and refer to a 10-fold breakdown of Romanian households, i.e. five socio-economic categories from urban and rural areas, taking into account own (home) production of food. To identify the most vulnerable groups of Romanian consumers to food price changes, the Slutsky approximation Compensating Variation approach is applied. The results suggest that, if the current CAP is adopted and results in food price changes averaging a 10 per cent increase in all food prices, the lowest-income groups (i.e. urban and rural unemployed households, urban... |
