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On the Characterisation and Measurement of the Redistributive Effect of Agricultural Policy

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Paul Allanson

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Abstract

The article proposes a coherent framework for the evaluation of the redistributive performance of agricultural policy. An illustrative study shows that the vertical stance of policy in Scotland was progressive in absolute terms, reflecting the chronic dependence of Scottish agriculture on policy transfers. Nevertheless, the overall redistributive effect of policy was to increase absolute inequality in farm incomes because of horizontal inequities in the incidence of transfers, though neither systematic discrimination between farm types nor systematic reranking was the main cause. The targeting of policy transfers could be improved by the use of indicator variables more strongly correlated with pre-transfer incomes. Copyright 2007 The Author. Journal compilation 2007 The Agricultural Economics Society.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1477-9552.2007.00132.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Agricultural Economics.

Volume (Year): 59 (2008)
Issue (Month): 1 (02)
Pages: 169-187
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Handle: RePEc:bla:jageco:v:59:y:2008:i:1:p:169-187

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Allanson, Paul, 2005. "The Impact of Farm Income Support on Absolute Inequality," 94th Seminar, April 9-10, 2005, Ashford, UK 24432, European Association of Agricultural Economists. [Downloadable!]
  2. van de Ven, Justin & Creedy, John & Lambert, Peter J, 2001. " Close Equals and Calculation of the Vertical, Horizontal and Reranking Effects of Taxation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(3), pages 381-94, July. [Downloadable!] (restricted)
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  3. Duclos, Jean-Yves & Jalbert, Vincent & Araar, Abdelkrim, 2003. "Classical Horizontal Inequity and Reranking: an Integrating Approach," Cahiers de recherche 0306, CIRPEE. [Downloadable!]
  4. Paul Allanson, 2006. "The Redistributive Effects of Agricultural Policy on Scottish Farm Incomes," Journal of Agricultural Economics, Blackwell Publishing, vol. 57(1), pages 117-128, 03. [Downloadable!] (restricted)
  5. Juan Gabriel Rodríguez & Rafael Salas & Irene Perrote, 2005. "Partial Horizontal Inequity Orderings: A Non-parametric Approach," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(3), pages 347-368, 06. [Downloadable!] (restricted)
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  6. Plotnick, Robert, 1981. "A Measure of Horizontal Inequity," The Review of Economics and Statistics, MIT Press, vol. 63(2), pages 283-88, May. [Downloadable!] (restricted)
  7. Lerman, Robert I. & Yitzhaki, Shlomo, 1989. "Improving the accuracy of estimates of Gini coefficients," Journal of Econometrics, Elsevier, vol. 42(1), pages 43-47, September. [Downloadable!] (restricted)
  8. Amiel, Yoram & Cowell, Frank & Polovin, Avraham, 1996. "Inequality among the Kibbutzim," Economica, London School of Economics and Political Science, vol. 63(250), pages S63-85, Suppl.. [Downloadable!] (restricted)
  9. Stephen Jenkins & Peter Lambert, . "Horizontal Inequity Measurement: A Basic Reassessment," Discussion Papers 96/21, Department of Economics, University of York.
  10. Paul Allanson, 2007. "Classical Horizontal Inequities in the Provision of Agricultural Income Support," Review of Agricultural Economics, American Agricultural Economics Association, vol. 29(4), pages 656-671, December. [Downloadable!] (restricted)
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  11. Jean-Yves Duclos & Peter J. Lambert, 2000. "A normative and statistical approach to measuring classical horizontal inequity," Canadian Journal of Economics, Canadian Economics Association, vol. 33(1), pages 87-113, February. [Downloadable!] (restricted)
  12. Dasgupta, Partha & Sen, Amartya & Starrett, David, 1973. "Notes on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 180-187, April. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Paul Allanson & Benedetto Rocchi, 2008. "A comparative analysis of the redistributive effects of agricultural policy in Tuscany and Scotland," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 86(1), pages 35-56. [Downloadable!]
  2. Paul Allanson & Benedetto Rocchi, 2006. "An analysis of the redistributive effects of agricultural policy in Tuscany with comparative results for Scotland," Discussion Papers 193, University of Dundee, Economic Studies. [Downloadable!]
  3. Elek, Sandor & Ferto, Imre & Forgacs, Csaba, 2008. "Who recieve rural development measures in Hungary?," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44255, European Association of Agricultural Economists. [Downloadable!]
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