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Farm-household investment behaviour and the CAP decoupling: Methodological issues in assessing policy impacts

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Author Info

  • Viaggi, Davide
  • Raggi, Meri
  • Gomez y Paloma, Sergio

Abstract

The objective of this paper is to compare and discuss the role of farm-household surveys and farm-household models in assessing the impact of the Common Agricultural Policy reforms, focusing in particular on the effects of 2003 decoupling on farm investment behaviour. The paper compares two specific approaches: (i) in-depth face-to-face interviews with farm-householders and (ii) mathematical programming models of individual farm-households. The effects of decoupling estimated by these two approaches coincide in a majority of cases, while the differences suggest relevant complementarities. Altogether the paper suggests a wider scope for using mixed methodologies in assessing CAP policy impacts.

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File URL: http://www.sciencedirect.com/science/article/B6V82-517J232-2/2/317889c4e68316c84150aa99318b989e
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Bibliographic Info

Article provided by Elsevier in its journal Journal of Policy Modeling.

Volume (Year): 33 (2011)
Issue (Month): 1 (January)
Pages: 127-145

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Handle: RePEc:eee:jpolmo:v:33:y:2011:i:1:p:127-145

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Web page: http://www.elsevier.com/locate/inca/505735

Related research

Keywords: Common Agricultural Policy Policy evaluation Investment behaviour Modelling tools Stated intentions;

References

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  1. Michael T. Wallace & Joan E. Moss, 2002. "Farmer Decision-Making with Conflicting Goals: A Recursive Strategic Programming Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(1), pages 82-100.
  2. Oliver Balkhausen & Martin Banse & Harald Grethe, 2008. "Modelling CAP Decoupling in the EU: A Comparison of Selected Simulation Models and Results," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(1), pages 57-71, 02.
  3. Britz, Wolfgang & Heckelei, Thomas, 2008. "Recent Developments In Eu Policies – Challenges For Partial Equilibrium Models," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6315, European Association of Agricultural Economists.
  4. Cornelis Gardebroek & Alfons G.J.M. Oude Lansink, 2004. "Farm-specific Adjustment Costs in Dutch Pig Farming," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(1), pages 3-24.
  5. Alexandre Gohin & Laure Latruffe, 2006. "The Luxembourg Common Agricultural Policy Reform and the European Food Industries: What's at Stake?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(1), pages 175-194, 03.
  6. van Asseldonk, M. A. P. M. & Huirne, R. B. M. & Dijkhuizen, A. A. & Beulens, A. J. M., 1999. "Dynamic programming to determine optimum investments in information technology on dairy farms," Agricultural Systems, Elsevier, vol. 62(1), pages 17-28, October.
  7. Viaggi, Davide & Raggi, Meri & Gomez y Paloma, Sergio, 2010. "An integer programming dynamic farm-household model to evaluate the impact of agricultural policy reforms on farm investment behaviour," European Journal of Operational Research, Elsevier, vol. 207(2), pages 1130-1139, December.
  8. Alexandre Gohin, 2006. "Assessing CAP Reform: Sensitivity of Modelling Decoupled Policies," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(3), pages 415-440.
  9. Gomez y Paloma, Sergio & Raggi, Meri & Viaggi, Davide, 2008. "Between markets and policy: farm household's reaction to decoupling," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44019, European Association of Agricultural Economists.
  10. Janssen, Sander & van Ittersum, Martin K., 2007. "Assessing farm innovations and responses to policies: A review of bio-economic farm models," Agricultural Systems, Elsevier, vol. 94(3), pages 622-636, June.
  11. Teresa Serra & David Zilberman & Barry K. Goodwin & Allen Featherstone, 2006. "Effects of decoupling on the mean and variability of output," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(3), pages 269-288, September.
  12. Revoredo-Giha, Cesar & Leat, Philip M.K., 2008. "Red Meat Producers’ Preferences For Strategies To Cope With The Cap Reform In Scotland," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44844, European Association of Agricultural Economists.
  13. Tranter, R.B. & Swinbank, A. & Wooldridge, M.J. & Costa, L. & Knapp, T. & Little, G.P.J. & Sottomayor, M.L., 2007. "Implications for food production, land use and rural development of the European Union's Single Farm Payment: Indications from a survey of farmers' intentions in Germany, Portugal and the UK," Food Policy, Elsevier, vol. 32(5-6), pages 656-671.
  14. Breen, James P. & Hennessy, Thia C. & Thorne, Fiona S., 2005. "The effect of decoupling on the decision to produce: An Irish case study," Food Policy, Elsevier, vol. 30(2), pages 129-144, April.
  15. Gallerani, Vittorio & Gomez y Paloma, Sergio & Raggi, Meri & Viaggi, Davide, 2008. "Modelling The Effect Of Eu Policy Reforms On Farm Investment Behaviour," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6444, European Association of Agricultural Economists.
  16. Latruffe, Laure & Davidova, Sophia, 2006. "CAP Direct Payments and Distributional Conflicts Over Rented Land within Corporate Farms in the New Member States," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25242, International Association of Agricultural Economists.
  17. Genius, Margarita & Karagiannis, Giannis & Tzouvelekas, Vangelis, 2008. "Assessing European Farmers’ Intentions In The Light Of The 2003 Cap Reform," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44849, European Association of Agricultural Economists.
  18. Gallerani, Vittorio & Gomez y Paloma, Sergio & Raggi, Meri & Viaggi, Davide, 2008. "Understanding The Determinants Of Investment Reactions To Decoupling," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44841, European Association of Agricultural Economists.
  19. Richard E. Howitt, 1995. "A Calibration Method For Agricultural Economic Production Models," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(2), pages 147-159.
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Citations

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Cited by:
  1. Bartolini, Fabio & Viaggi, Davide, 2011. "Factors Affecting the Impact of CAP Scenarios on Farm Structure: An Analysis Based on Stated Intentions," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114244, European Association of Agricultural Economists.
  2. Santeramo, Fabio Gaetano & Cioffi, Antonio, 2012. "The entry price threshold in EU agriculture: deterrent or barrier?," MPRA Paper 36431, University Library of Munich, Germany.
  3. Giannoccaro, Giacomo & Berbel, Julio, 2012. "The Determinants of Farmer’s Intended Behaviour Towards the Adoption of Energy Crops in Southern Spain: an Application of the Classification Tree-Method," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 2, August.

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