Modelling The Effect Of Eu Policy Reforms On Farm Investment Behaviour
AbstractThe objective of this paper is to analyse farm strategies and investment behaviour in a sample of selected Italian farm-households facing different scenarios, with a particular focus on the effects of the 2003 CAP reform. Models were built for individual households using multi-criteria dynamic programming, including investment choice. A total of 24 farms were selected for modelling, all located in Emilia Romagna (Italy). The simulations show a strong effect of both policy and markets scenarios on household investment, though the latter seems more relevant than the former. However, decoupling itself shows minor effects in the majority of cases. The models offer useful insights about the mechanisms of adaptation and their implications for the effects of policies. The main drawbacks are in the heavy data collection and computational requirements, and in the related difficulties to achieve a satisfactory degree of representativeness.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 107th Seminar, January 30-February 1, 2008, Sevilla, Spain with number 6444.
Date of creation: 2008
Date of revision:
CAP reform; decoupling; investment; multicriteria; dynamic; models; Agricultural and Food Policy; Agricultural Finance; Farm Management;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-25 (All new papers)
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.:
- 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.
- 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.
- 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.
- Conor O'Toole & Thia Hennessy, 2013. "Do decoupled payments affect investment financing constraints? Evidence from Irish agriculture," Trinity Economics Papers tep0113, Trinity College Dublin, Department of Economics.
- Viaggi, Davide & Raggi, Meri & Gomez y Paloma, Sergio, 2011. "Farm-household investment behaviour and the CAP decoupling: Methodological issues in assessing policy impacts," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 127-145, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.