Convergence in the Agricultural Incomes: a Comparison between the US and EU

Cristina Brasili, Roberto Fanfani and Luciano Gutierrez

No 9397, 103rd Seminar, April 23-25, 2007, Barcelona, Spain from European Association of Agricultural Economists

Abstract: In this paper we compare the changes in farm incomes in EU regions and US States between1989 and 2002. The aim of this comparative analysis is highlight the patterns of convergence or divergence and how they differ over time. We use two recent analytical instruments: non-stationary panel analysis and dynamic distribution analysis. Both tools overcome the problems involved in using standard cross-section analysis. The results of the non-stationary panel analysis show that the EU regions are converging, and that family farm income is converging faster than net added value. In the US states the analysis shows that substantial differences in farm income persist, and there are no evident signs of convergence. While, the regions are heterogeneous, we modified the analysis to allow for the concept of conditional convergence. The results show that the regions converge towards different levels of productivity but regions that are further from their steady-state level will grow faster.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Pages: 22
Date: 2007
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Convergence in the Agricultural Incomes: A Comparison between the US and EU (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaa103:9397

DOI: 10.22004/ag.econ.9397

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