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Abstract

Several authors have emphasised the effect of agricultural policy (such as SFP) as a driver of structural change. This paper aims to identify the determinants of the change in the use of productive factors under different policy scenarios. The analysis is performed ex ante, assessing the effect of CAP abolishment (as compared to the current CAP) on the use of productive factors, based on stated intentions by farmers. The results highlight the role of farm size, intensity and education in determining different patterns of reaction to policy changes. Also differences are identified among the three main component of structural change, land, capital and labour, with the latter being the less dependent upon the CAP.

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