Distributional Effects of the CAP on Western German Farm Incomes and Regional Farm Income Disparity
AbstractThis study is concerned with measuring impacts of the Common Agricultural Policy (CAP) on farm income distribution of western Germany. Not only the sheer contribution of market price support and direct payments as a proportion of income is taken into account, but also the impact of support on production incentives. For this purpose, we apply a modelling system consisting of a partial equilibrium model and a programming model. Based on a comparison of Gini coefficients and a decomposition of overall inequality effects we conclude that liberalization of the agricultural sector leads to a more unequal distribution of family farm income in relative terms, whereas a liberalized market provides a more equal situation in absolute terms. Furthermore, we consider the impacts of liberalizing the agricultural market on regional differences in average agricultural income and conclude that in relative terms liberalization increases regional inequality.
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 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114442.
Date of creation: 2011
Date of revision:
Income distribution; CAP; Farm Group Model; Equilibrium Model; Agricultural and Food Policy; Agricultural Finance;
This paper has been announced in the following NEP Reports:
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.:
- Plotnick, Robert, 1981. "A Measure of Horizontal Inequity," The Review of Economics and Statistics, MIT Press, vol. 63(2), pages 283-88, May.
- Paul Allanson, 2007.
"Classical Horizontal Inequities in the Provision of Agricultural Income Support,"
Review of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 29(4), pages 656-671.
- Paul Allanson, 2005. "Classical Horizontal Inequities in the Provision of Agricultural Income Support," Dundee Discussion Papers in Economics 177, Economic Studies, University of Dundee.
- Allanson, Paul, 2005. "Classical Horizontal Inequities in the Provision of Agricultural Income Support," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24769, European Association of Agricultural Economists.
- Aronson, J. Richard & Lambert, Peter J., 1994. "Decomposing the Gini Coefficient to Reveal the Vertical, Horizontal, and Reranking Effects of Income Taxation," National Tax Journal, National Tax Association, vol. 47(2), pages 273-94, June Cita.
- Paul Allanson, 2008.
"On the Characterisation and Measurement of the Redistributive Effect of Agricultural Policy,"
Journal of Agricultural Economics,
Wiley Blackwell, vol. 59(1), pages 169-187, 02.
- Paul Allanson, 2006. "On the characterisation and measurement of the redistributive effects of agricultural policy," Dundee Discussion Papers in Economics 188, Economic Studies, University of Dundee.
- 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.
- Lambert, Peter J & Aronson, J Richard, 1993. "Inequality Decomposition Analysis and the Gini Coefficient Revisited," Economic Journal, Royal Economic Society, vol. 103(420), pages 1221-27, September.
- Paul Allanson & Benedetto Rocchi, 2008. "A comparative analysis of the redistributive effects of agricultural policy in Tuscany and Scotland," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 86(1), pages 35-56.
- Kakwani, Nanok C, 1977. "Measurement of Tax Progressivity: An International Comparison," Economic Journal, Royal Economic Society, vol. 87(345), pages 71-80, March.
- Schmid, Erwin & Sinabell, Franz & Hofreither, Markus F., 2006. "Distributional effects of CAP instruments on farm household incomes in Austria," 2006 Annual meeting, July 23-26, Long Beach, CA 21467, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Mishra, Ashok & El-Osta, Hisham & Gillespie, Jeffrey M., 2009. "Effect of agricultural policy on regional income inequality among farm households," Journal of Policy Modeling, Elsevier, vol. 31(3), pages 325-340, May.
- Deppermann, Andre & Grethe, Harald & Offermann, Frank, 2010. "Farm level effects of EU policy liberalization: Simulations based on an EU-wide agricultural sector model and a supply model of the German agricultural sector," 114th Seminar, April 15-16, 2010, Berlin, Germany 61083, European Association of Agricultural Economists.
- Benedetto Rocchi, 2009. "The CAP reform between targeting and equity: a structural policy analysis for Italy," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 36(2), pages 175-201, June.
- Kolm, Serge-Christophe, 1976. "Unequal inequalities. I," Journal of Economic Theory, Elsevier, vol. 12(3), pages 416-442, June.
- R. A. Musgrave & Tun Thin, 1948. "Income Tax Progression, 1929-48," Journal of Political Economy, University of Chicago Press, vol. 56, pages 498.
- Paul Allanson, 2006. "The Redistributive Effects of Agricultural Policy on Scottish Farm Incomes," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(1), pages 117-128, 03.
- Kolm, Serge-Christophe, 1976. "Unequal inequalities. II," Journal of Economic Theory, Elsevier, vol. 13(1), pages 82-111, August.
- Heiko Hansen & Ramona Teuber, 2011. "Assessing the impacts of EU's common agricultural policy on regional convergence: sub-national evidence from Germany," Applied Economics, Taylor & Francis Journals, vol. 43(26), pages 3755-3765.
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.