Direct payments and competitiveness. Assessing redistributive effects of internal convergence in Italy

Andrea Bonfiglio, Roberto Henke, Fabio Pierangeli and D’Andrea, Maria Rosaria Pupo

No 271955, 162nd Seminar, April 26-27, 2018, Budapest, Hungary from European Association of Agricultural Economists

Abstract: The objective of the paper is twofold. Firstly, investigating the relationship between competitiveness, measured by technical efficiency, and direct payments of a sample of Italian farms prior to the application of the 2014-2020 CAP reform. Secondly, evaluating possible implications of alternative scenarios about distribution of direct payments on technical efficiency. To these aims, a data envelopment analysis approach in conjunction with a double bootstrapped left-truncated regression model are adopted. Results indicate that direct payments are negatively associated with technical efficiency. Moreover, they show that redistribution of policy subsidies especially towards more inefficient farms provokes a decrease in overall technical efficiency.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Date: 2018-04-26
New Economics Papers: this item is included in nep-eff
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaa162:271955

DOI: 10.22004/ag.econ.271955

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