CAP subsidies and productivity of the EU farms

Rizov, Marian, Pokrivcak, Jan and Ciaian, Pavel (2013) CAP subsidies and productivity of the EU farms. Journal of Agricultural Economics, 64 (3). pp. 537-557. ISSN 0021-857X

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CAP subsidies and productivity of the EU farms

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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 on
farm productivity in the period before the decoupling reform was implemented;
after decoupling the effect of subsidies on productivity is more nuanced and in
several countries it turned positive.

Additional Information:The final published version of this article can be accessed online at
Keywords:CAP subsidies, investment, productivity, micro data, EU farms
Subjects:L Social studies > L140 Econometrics
L Social studies > L112 Agricultural Economics
L Social studies > L120 Microeconomics
L Social studies > L241 European Union Politics
Divisions:Lincoln International Business School
ID Code:31030
Deposited On:23 Aug 2018 13:06

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