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Direct Payments and Land Rents: Evidence from New Member States

Liesbet Vranken () and Kristine Van Herck

No 175, Factor Markets Working Papers from Centre for European Policy Studies

Abstract: This Factor Markets Working Paper analyses the impact of increasing direct payments on land rents in six new EU member states in which agricultural subsidies largely increased as a result of their EU accession. The authors find that up to 25 eurocents per additional euro of direct payments is capitalised in land rents. In addition, the results show that capitalisation of direct payments is higher in more credit constrained markets, while capitalisation of direct payments is lower in countries where more land is used by corporate farms.

Pages: 22 pages
Date: 2013-08
New Economics Papers: this item is included in nep-agr
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Working Paper: Direct Payments and Land Rents: Evidence from New Member States (2013) Downloads
Working Paper: Direct Payments and Land Rents: Evidence from New Member States (2012) Downloads
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