Stefano Ciliberti, Simone Severini, Maria Giovanna Ranalli, Luigi Biagini, Angelo Frascarelli
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Do direct payments efficiently support incomes of small and large farms?
This paper assesses how efficiently Common Agricultural Policy direct payments enhance farm incomes by applying a quantile continuous treatment effect model on the Italian Farm Accountancy Data Network sample. Adding to previous analyses, we show that income responses to direct payments are higher in large farms rather than in small farms and lower in farms benefiting from larger levels of support. This suggests that direct payments are not very efficient in supporting incomes of small farms and reducing the disparity existing within the farm population. Furthermore, results suggest that there is scope to reduce the amount of payments provided to highly supported farms.
期刊介绍:
The European Review of Agricultural Economics serves as a forum for innovative theoretical and applied agricultural economics research.
The ERAE strives for balanced coverage of economic issues within the broad subject matter of agricultural and food production, consumption and trade, rural development, and resource use and conservation. Topics of specific interest include multiple roles of agriculture; trade and development; industrial organisation of the food sector; institutional dynamics; consumer behaviour; sustainable resource use; bioenergy; agricultural, agri-environmental and rural policy; specific European issues.
Methodological articles are welcome. All published papers are at least double peer reviewed and must show originality and innovation. The ERAE also publishes book reviews.