CAP subsidies and productivity of the EU farms

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


Issue Date:
Jun 06 2012
Publication Type:
Conference Paper/ Presentation
Record Identifier:
http://ageconsearch.umn.edu/record/124970
PURL Identifier:
http://purl.umn.edu/124970
Total Pages:
41
JEL Codes:
D24; L00; Q12; Q18




 Record created 2017-04-01, last modified 2018-01-22

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