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Please use this identifier to cite or link to this item: http://purl.umn.edu/44151

Title: EFFECTIVENESS OF CROSS-COMPLIANCE UNDER ASYMMETRIC INFORMATION AND DIFFERENTIATED COMPLIANCE CONSTRAINTS
Authors: Raggi, Meri
Bartolini, Fabio
Gallerani, Vittorio
Viaggi, Davide
Keywords: Cross-compliance
Asymmetric information
Single farm payment
Issue Date: 2008
Abstract: The effects of cross-compliance depend on the strategies of participation/compliance of farmers, as well as on the ability of public administration to design appropriate policy mechanisms. The objective of this paper is to present a framework for the analysis of cross-compliance under asymmetric information with the option of differentiating commitments across farmers. The methodology is applied to a case study represented by the province of Bologna (Italy). The results show that, in the present conditions of control and sanctions, only a small share of farms is interested in complying with cross-compliance. The profitability of the choice of compliance/non-compliance depends mainly on the amount of single farm payment entitlements compared with the total land. The differentiation of restrictions across farmers, under relevant budget constraints for controls, appears a key strategic components in order to ensure the effectiveness of cross-compliance.
URI: http://purl.umn.edu/44151
Institution/Association: European Association of Agricultural Economists>2008 International Congress, August 26-29, 2008, Ghent, Belgium
Total Pages: 7
Collections:2008 International Congress, August 26-29, 2008, Ghent, Belgium

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