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The Aglink and PEM (Policy Evaluation Matrix) models estimate the impact of reform on agricultural production, trade, world prices, farm incomes and other variables. The main focus is on comparing how different policy measures affect production and trade i.e. the degree of decoupling and on how good different measures are in increasing farmers' incomes i.e. the transfer efficiency. A conceptual framework has been developed for the study of decoupling, outlining the many different channels through which policy measures, influence production and trade levels. Indirect mechanisms will we given close attention, where appropriate using micro level or survey data. The potential effects of particular interest relate to risk, wealth and expectations. Different avenues - market creation, general or agricultural policy instruments - are studied as means to achieve the objectives set for the agricultural sector. Recently, income risk management was the subject of a major study. Top of page |