CAP subsidies and the productivity of EU farms

Working paper

Rizov, M., Pokrivcak, J. and Ciaian, P. 2013. CAP subsidies and the productivity of EU farms. FACTOR MARKETS project.
TypeWorking paper
TitleCAP subsidies and the productivity of EU farms
AuthorsRizov, M., Pokrivcak, J. and Ciaian, P.
Abstract

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.

JournalJournal of Agricultural Economics
PublisherFACTOR MARKETS project
Publication dates
Print27 Mar 2013
Publication process dates
Deposited23 Oct 2013
Output statusPublished
Additional information

Contributing institution: Slovak Agricultural University in Nitra (SAU)

Web address (URL)http://www.factormarkets.eu/content/cap-subsidies-and-productivity-eu-farms
LanguageEnglish
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