European Review of Agricultural Economics Advance Access published online on November 30, 2006
European Review of Agricultural Economics, doi:10.1093/erae/jbl027
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The status quo bias and reform of the Common Agricultural Policy: impact of voting rules, the European Commission and external changes
1 Slovak Agricultural University, Nitra, Slovakia
2 Katholieke Universiteit Leuven, Leuven, Belgium
3 Stanford University, California, USA
Corresponding author: Jan Pokrivcak, Slovak Agricultural University in Nitra, Department of Economics, Tr. A. Hlinku 2, 949 01 Nitra, Slovakia. E-mail: , jp02{at}fem.uniag.sk
Received January 2003; Revision received September 2006. We develop a formal model of EU decision-making on the Common Agricultural Policy (CAP). The model is used to evaluate under what conditions CAP reform occurs and what the influence of the European Commission (Commission) is on CAP reform. We find that the voting and amendment rules in the Council of the European Union, the number of policy instruments and external changes have important impacts on the occurrence and extent of CAP reform and on the influence of the Commission. Stricter voting rules increase the status quo bias and reduce Commission influence, whereas stricter amendment rules increase both the status quo bias and Commission influence. More significant external change results in more reform and more Commission influence.
Keywords: political economy, agricultural policy, political process, policy reform