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.
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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.:
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- 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.
- 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.
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