Capitalization of the Single Payment Scheme into Land Value: Generalized Propensity Score Evidence from the European Union

Jerzy Michalek, Pavel Ciaian and d’Artis Kancs

Land Economics, 2014, vol. 90, issue 2

Abstract: 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)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (61)

Downloads: (external link)
http://le.uwpress.org/cgi/reprint/90/2/260
A subscription is required to access pdf files. Pay per article is available.

Related works:
Working Paper: Capitalization of the Single Payment Scheme into Land Value: Generalized Propensity Score Evidence from the EU (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:90:y:2014:ii:1:p:260-289

Access Statistics for this article

More articles in Land Economics from University of Wisconsin Press
Bibliographic data for series maintained by ().