Dynamics of farm income dispersion in the Belgian Loamy region

Jean Francois Sneessens

European Review of Agricultural Economics, 1979, vol. 6, issue 2, 191-208

Abstract: This article analyses the dynamics of income dispersion between farms from 1962 to 1975. It sets out to determine the direction of the trend in income dispersion, its importance, and its determining factors. The latter include the development of the technical conditions of production and the price policies adopted. The statistical material consists of farm accounting data from a sample of farms situated in the Belgian Loamy region. Income dispersion has been measured by the coefficient of variation and its trend has been explained by means of multiple regression. The results of the analysis show that during the period 1962 to 1975 price policy has had a very marked effect in reducing income dispersion, whilst the changes in the technical conditions of production have had an opposite effect. Family income dispersion has overall been reduced by 5.1% which verifies the equalising role price policy can play in agriculture.

Date: 1979
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