The empirics of decoupling: Alternative estimation approaches of the farm-level production response

Roberto Esposti

European Review of Agricultural Economics, 2017, vol. 44, issue 3, 499-537

Abstract: This article proposes a methodological approach to identify and estimate the farm response to decoupling as a treatment effect. The outcome of ‘market orientation’ is measured by considering both the change of the production mix and the investment decisions. In order to admit different responses across different support levels, the dose–response function is estimated adopting recent alternative continuous-treatment estimators. The application concerns the impact of the 2003/2005 EU Common Agricultural Policy (CAP) reform on the production choices within a balanced sample of Italian farms. Results confirm that farm response varies across support levels and show that the 2003/2005 reform of the first pillar of the CAP actually had a different, and somehow, opposite impact in reorienting farm production choices compared to investment decisions.

Keywords: decoupling; treatment effects; dose–response function; farm production choices (search for similar items in EconPapers)
JEL-codes: C21 O13 Q12 Q18 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (9)

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