EFFECTS OF POLICY INSTRUMENTS ON FARM INVESTMENTS AND PRODUCTION DECISIONS IN THE SPANISH COP SECTOR

Zein Kallas (), Teresa Serra and Jose Maria Gil

No 49971, 2009 Conference, August 16-22, 2009, Beijing, China from International Association of Agricultural Economists

Abstract: Our paper assesses 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; Production Economics (search for similar items in EconPapers)
Pages: 22
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ageconsearch.umn.edu/record/49971/files/49971.pdf (application/pdf)

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)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae09:49971

DOI: 10.22004/ag.econ.49971

Access Statistics for this paper

More papers in 2009 Conference, August 16-22, 2009, Beijing, China from International Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().