Effects of policy instruments on farm investments and production decisions in the Spanish cop sector

Zein Kallas (), Jose Maria Gil and Teresa Serra

No 58036, 113th Seminar, September 3-6, 2009, Chania, Crete, Greece from European Association of Agricultural Economists

Abstract: Our paper asses the impacts of the partially decoupled (PD) scheme, implemented during the 1990s and first half of the 2000s in the framework of the Common Agricultural Policy (CAP), on on-farm investment as well as on other production decisions. The Spanish COP sector was taken as a case study due to its economic and political relevance. The empirical analysis is applied on farm-level data from the Farm Accountancy Data Network (FADN), observed from 2000 to 2004, based on. We use a reduced-form application of the dual model of investment under uncertainty and a system of censored and non censored equations is estimated. PD payments are found to increase short-run production and to generate a statically significant increase in the investment in farm assets. Results also show the importance of assessing the effects of PD payments in a dynamic framework as the one applied in this paper.

Keywords: Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety (search for similar items in EconPapers)
Pages: 14
Date: 2009
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Effects of policy instruments on farm investments and production decisions in the Spanish COP sector (2012)
Working Paper: EFFECTS OF POLICY INSTRUMENTS ON FARM INVESTMENTS AND PRODUCTION DECISIONS IN THE SPANISH COP SECTOR (2011)
Working Paper: EFFECTS OF POLICY INSTRUMENTS ON FARM INVESTMENTS AND PRODUCTION DECISIONS IN THE SPANISH COP SECTOR (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaa113:58036

DOI: 10.22004/ag.econ.58036

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