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European Association of Agricultural Economists >
2008 International Congress, August 26-29, 2008, Ghent, Belgium >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/44144
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| Title: | Impact of CAP Direct Payments on French Farms’ Managerial Efficiency |
| Authors: | Latruffe, Laure
Guyomard, Herve
Le Mouel, Chantal |
| Keywords: | technical efficiency
managerial
efficiency
subsidies
crop farms
beef farms
France |
| Issue Date: | 2008 |
| Abstract: | This paper investigates the relationship
between CAP direct payments and managerial efficiency
for French crop and beef farms. Managerial efficiency
scores are calculated using a four-step approach that
allows to disentangle managerial inefficiency from other
technical inefficiency components, notably what is due to
unfavourable environment conditions. Then managerial
efficiency scores are regressed over a set of explanatory
variables, including CAP direct payments. Our
empirical application, based on individual farm data
and meteorological data at the municipality level for the
year 2000, shows that there is a substantial component
of inefficiency that is due to unfavourable conditions.
Moreover, there is a significant negative relationship
between managerial efficiency and CAP direct payments
for crop farms, but a positive relationship for livestock
farms. The type of payments also matter, with area-based
and Less Favoured Area payments reducing crop
farms’ efficiency but headage and agri-environmental
payments increasing beef farms’ efficiency. |
| URI: | http://purl.umn.edu/44144 |
| Institution/Association: | European Association of Agricultural Economists>2008 International Congress, August 26-29, 2008, Ghent, Belgium |
| Total Pages: | 8 |
| Collections: | 2008 International Congress, August 26-29, 2008, Ghent, Belgium
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