Direct payments to Japanese farmers: Do they reduce rice income inequality? Lessons for other Asian countries

Atomu Nitta, Yasutaka Yamamoto, Katsunobu Kondo and Daisuke Sawauchi

Journal of Policy Modeling, 2020, vol. 42, issue 5, 968-981

Abstract: This study investigates the income-equalizing effect of direct payments on rice income inequality in Japan using the Gini decomposition and the concentration curve. The results indicate that the direct payments in Japan are highly concentrated but they nevertheless reduce rice income inequality. However, the equalizing effect of direct payments is less than that in other countries because the Japanese payments are linked to participation in an acreage reduction program and are not fully decoupled. To pursue greater income equality, policymakers should decouple the payments and introduce mechanisms to decrease or limit the amount of support to the largest beneficiaries.

Keywords: Income inequality; Direct payments; Rice income; Gini decomposition; Japan (search for similar items in EconPapers)
JEL-codes: D31 Q12 Q18 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:42:y:2020:i:5:p:968-981

DOI: 10.1016/j.jpolmod.2020.02.006

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