The Design Of The Income Stabilization Tool In Italy: Balancing Risk Pooling, Risk Reduction And Distribution Of Policy Benefits

Simone Severini, Luigi Biagini and Robert Finger

No 260826, 2017 International Congress, August 28-September 1, 2017, Parma, Italy from European Association of Agricultural Economists

Abstract: The potential impact of the income stabilisation tool (IST) is analysed on a panel of Italian farms. The paper extends the existing literature by investigating two implementation issues: level of aggregation of mutual funds (MF); definition of farmers contribution to MF. Enlarging the MF to cover more sectors/regions allows to better pool the risk making the indemnifications less variable over time. Regarding the second issue, a flat contribution is compared with a contribution proportional to the expected income of each farm. The latter approach generates a less unequal distribution of benefits among farms and more effectively reduces income variability.

Keywords: Community/Rural/Urban; Development (search for similar items in EconPapers)
Pages: 18
Date: 2017-08-29
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae17:260826

DOI: 10.22004/ag.econ.260826

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