Capitalization of the Single Payment Scheme into Land Value: Generalized Propensity Score Evidence from the European Union
Pavel Ciaian and
Land Economics, 2014, vol. 90, issue 2
This paper estimates the capitalization of the single payment scheme (SPS) into land values. The theory suggests a nonlinear and discontinuous relationship between the SPS and land rents. In empirical analysis we employ unique farm-level panel data and apply the generalized propensity score matching approach. Our estimates suggest a 6% to 10% SPS capitalization rate. On average in the European Union, the nonfarming landowners’ gains from the SPS are only 4%. However, there is a large variation in the capitalization rate for different SPS levels and between different member states (3% to 94%).
JEL-codes: H23 Q15 (search for similar items in EconPapers)
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Working Paper: Capitalization of the Single Payment Scheme into Land Value: Generalized Propensity Score Evidence from the EU (2014)
Working Paper: SPS Capitalization into Land Value: Generalized Propensity Score Evidence from the EU (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:90:y:2014:ii:1:p:260-289
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