EconPapers    
Economics at your fingertips  
 

SPS Capitalization into Land Value: Generalized Propensity Score Evidence from the EU

Pavel Ciaian, d'Artis Kancs and Jerzy Michalek

LICOS Discussion Papers from LICOS - Centre for Institutions and Economic Performance, KU Leuven

Abstract: This paper estimates the capitalization of the Single Payment Scheme (SPS) into land values. The theory suggests that the relationship between the SPS and land rents is non-linear and discontinuous, because the SPS impact on land values depends on many factors, such as policy implementation details, market imperfections and institutional regulations. In empirical analysis we employ a unique farm-level panel data set, and apply the generalized propensity score (GPS) matching approach to estimate the capitalization of the SPS. Our results suggest that around 6 percent of the total SPS get capitalized into land rents. On average in the EU, the non-farming landowners' gains from the SPS are only 3 percent. However, there is a large variation in the capitalization rate for different SPS levels, and between Member States (between 0 and 58 percent).

Keywords: decoupled subsidies; capitalization; land market; income distributional effects; selection bias (search for similar items in EconPapers)
JEL-codes: Q12 Q18 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17) Track citations by RSS feed

Downloads: (external link)
http://www.econ.kuleuven.be/licos/publications/dp/dp293.pdf

Related works:
Journal Article: Capitalization of the Single Payment Scheme into Land Value: Generalized Propensity Score Evidence from the European Union (2014) Downloads
Working Paper: Capitalization of the Single Payment Scheme into Land Value: Generalized Propensity Score Evidence from the EU (2014) Downloads
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:lic:licosd:29311

Access Statistics for this paper

More papers in LICOS Discussion Papers from LICOS - Centre for Institutions and Economic Performance, KU Leuven Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2019-07-16
Handle: RePEc:lic:licosd:29311