CAP Subsidies and the Productivity of EU Farms

This paper investigates the impact of subsidies from the common agricultural policy on the total factor productivity of farms in the 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 samples from the Farm Accountancy Data Network for EU-15 countries. Our main findings are clear: subsidies had a negative impact on farm productivity in the period before the decoupling reform was implemented; after decoupling the effect of subsidies on productivity was more nuanced, as in several countries it turned positive.


Keywords:
Editor(s):
CEPS
Issue Date:
Mar 27 2013
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/146962
Total Pages:
28
Series Statement:
Factor Markets Working Paper
37




 Record created 2017-04-01, last modified 2017-08-27

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