Credit Market Imperfections and the Distribution of Policy Rents

Pavel Ciaian and Johan Swinnen

No 44050, 2008 International Congress, August 26-29, 2008, Ghent, Belgium from European Association of Agricultural Economists

Abstract: This article shows that credit market imperfections have important implications for the distribution of policy rents. In a model with land as fixed factor and credit market imperfections, when an area payment is given, land rents go up by more than the subsidy. On aggregate farms may lose from the subsidy. The results depend on the extent to which subsidies have direct and indirect effects on the credit constraints, on whether farms rent or own land, and on farm heterogeneity.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Pages: 13
Date: 2008
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Citations: View citations in EconPapers (7)

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Journal Article: Credit Market Imperfections and the Distribution of Policy Rents (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae08:44050

DOI: 10.22004/ag.econ.44050

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