An Examination of the Relationship Between Subsidies on Production and Technical Efficiency in Agriculture: The Case of Cotton Producers in Greece

Grigorios Emvalomatis, Alfons Oude Lansink () and Spiro Stefanou

No 6673, 107th Seminar, January 30-February 1, 2008, Sevilla, Spain from European Association of Agricultural Economists

Abstract: Subsidies on production have long been criticized for protecting producers from competition, and thus removing an incentive for efficient use of the resources. This study undertakes the examination of the impact of partially decoupled subsidies on the technical efficiency scores of cotton producers in Greece. The results indicate that compensatory area payments reduce the efficiency scores of the producers by diverting resources from products for which the subsidy is based on the area planted to the production of cotton, for which the aid is related to the volume of output.

Keywords: Agricultural Finance; Crop Production/Industries; Production Economics (search for similar items in EconPapers)
Pages: 16
Date: 2008
New Economics Papers: this item is included in nep-eff
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Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaa107:6673

DOI: 10.22004/ag.econ.6673

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