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The income effect of CAP subsidies: implications of distributional leakages for transfer efficiency in Italy

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  • Ciliberti, Stefano
  • Frascarelli, Angelo

Abstract

Enhancing farm income level is one of the main purpose of the Common Agricultural Policy (CAP). The ability to reach such a goal can be measured in terms of transfer efficiency, that is affected by the presence of distributive leakages through the agro-food system. The present work aims to shed light on the income distributional effects of the main forms of CAP subsidies in Italy over the period 2008–2014: single payment scheme, coupled payment and second pillar aids. To this aim, an Arellano–Bond linear dynamic panel-data estimation (based on a database provided by the Italian FADN) is performed. Results show that all the main types of CAP support have a significant income effect, even though some relevant differences occur between decoupled and coupled components of direct payments received by Italian farmers as a consequence of distributional leakages.

Suggested Citation

  • Ciliberti, Stefano & Frascarelli, Angelo, 2018. "The income effect of CAP subsidies: implications of distributional leakages for transfer efficiency in Italy," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 7(2), August.
    • Handle: RePEc:ags:aieabj:301890
    DOI: 10.22004/ag.econ.301890
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    Cited by:

    1. Kryszak, Łukasz, 2020. "Income Convergence In The Agricultural Sector In The Context Of The European Union’S Common Agricultural Policy," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2020(3).
    2. Lucia Briamonte & Paolo Piatto & Dario Macaluso & Mariagrazia Rubertucci, 2023. "Trends and support models in public expenditure on agriculture: An italian perspective," Economia agro-alimentare, FrancoAngeli Editore, vol. 25(2), pages 189-220.
    3. Briamonte, Lucia & Piatto, Paolo & Macaluso, Dario & Rubertucci, Mariagrazia, 2023. "Trends and support models in public expenditure on agriculture: An italian perspective," Economia agro-alimentare / Food Economy, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA), vol. 25(2), October.
    4. Vincent Chatellier & Cécile Détang-Dessendre & Pierre P. Dupraz & Hervé Guyomard, 2021. "The sensitivity of the income of French farms to a reorientation of aid under the future post-2023 CAP [La sensibilité du revenu des exploitations agricoles françaises à une réorientation des aides," Post-Print hal-03514845, HAL.

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    Keywords

    Community/Rural/Urban Development;

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