Evaluating the effects of farm programs. Results from propensity score matching

Andrea Pufahl and Christoph Weiss

No 113, Department of Economics Working Paper Series from WU Vienna University of Economics and Business

Abstract: The paper applies a non-parametric propensity score matching approach to evaluate the effects of two types of farm programs (agri-environment (AE) programs and the less favoured area (LFA) scheme) on input use and farm output of individual farms in Germany. The analysis reveals a positive and significant treatment effect of the LFA scheme for farm sales and the area under cultivation. Participants in AE schemes are found to significantly increase the area under cultivation (in particular grassland), resulting in a decrease of livestock densities. Furthermore, participation in AE programs significantly reduced the purchase of farm chemicals (fertilizer, pesticide). We also find substantial differences in the treatment effect between individual farms (heterogeneous treatment effects). Farms which can generate the largest benefit from the program are most likely to participate. (authors' abstract)

Keywords: evaluation; farm programs; propensity score matching (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Evaluating the effects of farm programmes: results from propensity score matching (2009)
Working Paper: Evaluating the Effects of Farm Programs: Results from Propensity Score Matching (2008)
Working Paper: Evaluating the Effects of Farm Programs: Results from Propensity Score Matching (2008)
Working Paper: Evaluating the effects of farm programs: Results from propensity score matching (2007)
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