@article{Ratinger:162256,
      recid = {162256},
      author = {Ratinger, T. and Medonos, Tomas and Hruška, M.},
      title = {An Assessment of the Differentiated Effects of the  Investment Support to Agricultural Modernisation: the Case  of the Czech Republic},
      journal = {AGRIS on-line Papers in Economics and Informatics},
      address = {2013-12-31},
      number = {665-2016-44980},
      series = {5},
      pages = {12},
      month = {Dec},
      year = {2013},
      abstract = {Despite being considered as a key instrument of the  agricultural development policy, the investment support has  received only limited attention in the Czech economic  literature. The objective of this paper is to assess  economic effects of the measure 121 “Modernisation of  Agricultural Holdings” of the RDP 2007-2013 on the Czech  farms. A particular focus is on the distribution of the  supports and differentiated impacts of the supports  according to the production conditions and farm size. The  counterfactual approach is adopted, deploying direct  matching algorithm with the treatment of hereoscedasticity.  We show significant benefits of the investment support in  terms of business expansion (represented by Gross value  added) and labour productivity improvements. Analysing the  sample of applicants for Measure 121 we show that large  farms get much larger support than smaller farms. By  splitting the sample by natural conditions and by size we  demonstrate that benefits are higher on farms in less  favoured areas and on medium-size farms in both the  absolute and relative terms. Investigating the changes in  bank indebtedness we yield an indication that on average  the support mobilised additional resources to finance the  sector investment. However, there is no statistically  significant increase of bank indebtedness on large farms  due to investment support. In turn, it can be interpreted  that deadweight is rather high on large farms, while on  average the deadweight of the investment support programme  is rather low. Thus, the programme can improve its social  efficiency if it is targeted to small and medium size  farms.},
      url = {http://ageconsearch.umn.edu/record/162256},
      doi = {https://doi.org/10.22004/ag.econ.162256},
}