Producer Subsidy Equivalent and Consumer Subsidy Equivalent in OECD Countries and Estonia
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Riigikogu Chancellery Economic and Social Information Department, adviser
Taking into consideration the producer and consumer subsidy equivalents in planning the future development directions of agricultural policy provides, in the opinion of the author, a sufficiently adequate picture of a comparative level of subsidies by product groups in Estonia.
A comparison with the European Union countries is for the time being not sufficiently revealing. Using the Estonian PSE and CSE as a basis for foreign economy oriented economic calculations is hindered because of the methodological shortcomings having to do with the calculation of the PSE in rapidly transforming economies. In the countries where in the recent decade very rapid macroeconomic transformation has taken place, it may be necessary to adjust the results of the PSE calculations from year to year.