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Understanding The Determinants Of Investment Reactions To Decoupling

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

Abstract

The objective of this paper is identify the determinants of reaction to decoupling, focusing, in particular, on farm strategies and investment behaviour both on-farm and off-farm investment. The paper analyses a sample of 248 farm-households located in 8 EU countries, using decision tree algorithms. The factors emerging as determinants of an increase of on-farm investment as a reaction to decoupling are the existence of a successor, age, farm size, part time vs. full time head of farm. Allowing for the use of country variables, these tend to account already for the factors listed above and become the main predictors, followed by labour endowment, specialisation and expectations.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 109th Seminar, November 20-21, 2008, Viterbo, Italy with number 44841.

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Date of creation: 14 Nov 2008
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Handle: RePEc:ags:eaa109:44841

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Related research

Keywords: PAC reform; investment behaviour; households; decoupling; Agricultural and Food Policy; Consumer/Household Economics; Q18; Q12.;

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  1. 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.
  2. Elhorst, J Paul, 1993. "The Estimation of Investment Equations at the Farm Level," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 20(2), pages 167-82.
  3. Ahituv, Avner & Kimhi, Ayal, 2002. "Off-farm work and capital accumulation decisions of farmers over the life-cycle: the role of heterogeneity and state dependence," Journal of Development Economics, Elsevier, vol. 68(2), pages 329-353, August.
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Cited by:
  1. 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.
  2. 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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