  Within a dynamical model, rescattering effects are studied in coherent pion
photoproduction on the deuteron in the $\Delta$(1232) resonance region. The
model consists of a system of coupled equations for the N$\Delta$, NN$\pi$ and
NN channels. Pion rescattering leads in general to a significant reduction of
total and differential cross sections resulting in a better description of
experimental data. Only a few polarization observables are sensitive to
rescattering effects. In particular $T_{20}$ allows an analysis of the reaction
mechanism for specific kinematics. The question how rescattering affects the
sensitivity to the E2 excitation of the $\Delta$ resonance is also studied.

Nuclear Theory