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Distributional effects of CAP instruments on farm household incomes in Austria

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Author Info

  • Schmid, Erwin
  • Sinabell, Franz
  • Hofreither, Markus F.

Abstract

The Common Agricultural Policy (CAP) has evolved from an allocative towards a dis-tributive policy. Distributive policies aim at correcting market outcomes according to politi-cally determined objectives usually through transferring money from richer to poorer house-holds. We compare the distributional effects of CAP direct payments in EU Member States. In general, poorer households benefit more from social transfers than richer ones, whereas larger farms get more direct payments than smaller ones. Direct payments which are basically linked to the acreage of farms seem to be not an adequate tool to alleviate incomes of farm house-holds, a major objective of the CAP.

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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21467.

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Date of creation: 2006
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Handle: RePEc:ags:aaea06:21467

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Keywords: Agricultural and Food Policy;

References

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  1. Paul Allanson, 2005. "Classical Horizontal Inequities in the Provision of Agricultural Income Support," Dundee Discussion Papers in Economics 177, Economic Studies, University of Dundee.
  2. Mary Keeney, 2000. "The Distributional Impact of Direct Payments on Irish Farm Incomes," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 252-265.
  3. Michael Förster & Mark Pearson, 2002. "Income Distribution and Poverty in the OECD Area: Trends and Driving Forces," OECD Economic Studies, OECD Publishing, vol. 2002(1), pages 7-38.
  4. Paul Allanson, 2003. "CAP Reform and the Distribution of Farm Income in Scotland {Revised}," Dundee Discussion Papers in Economics 147, Economic Studies, University of Dundee.
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Cited by:
  1. Deppermann, Andre & Grethe, Harald & Offermann, Frank, 2011. "Distributional Effects of the CAP on Western German Farm Incomes and Regional Farm Income Disparity," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114442, European Association of Agricultural Economists.

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