CAP subsidies and productivity of the EU farms

Marian Rizov, Jan Pokrivcak and Pavel Ciaian

No 124970, 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil from International Association of Agricultural Economists

Abstract: The paper investigates the impact of the Common Agricultural Policy (CAP) subsidies on farm total factor productivity (TFP) in the European Union (EU). We employ a structural semi-parametric estimation algorithm directly incorporating the effect of subsidies into a model of unobserved productivity. We empirically study the effects using the Farm Accountancy Data Network (FADN) samples for the EU-15 countries. Our main findings are clear: subsidies impact negatively farm productivity in the period before the decoupling reform was implemented; after decoupling the effect of subsidies on productivity is more nuanced as in several countries it turned positive.

Keywords: Agricultural and Food Policy; Agricultural Finance; Industrial Organization; Productivity Analysis (search for similar items in EconPapers)
Pages: 41
Date: 2012-06-06
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Citations: View citations in EconPapers (9)

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https://ageconsearch.umn.edu/record/124970/files/ProductivityCAP11%20IAAE.pdf (application/pdf)

Related works:
Journal Article: CAP Subsidies and Productivity of the EU Farms (2013)
Working Paper: CAP Subsidies and the Productivity of EU Farms (2013)
Working Paper: CAP Subsidies and Productivity of EU Farms (2013)
Working Paper: CAP Subsidies and the Productivity of EU Farms (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae12:124970

DOI: 10.22004/ag.econ.124970

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