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Productivity and Subsidies in the European Union: An Analysis for Dairy Farms Using Input Distance Frontiers

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  • Latruffe, Laure
  • Bravo-Ureta, Boris E.
  • Moreira, Victor H.
  • Desjeux, Yann
  • Dupraz, Pierre

Abstract

This paper examines the association between agricultural subsidies and farm efficiency using data from the European Farm Accountancy Data Network (FADN) for operations specializing on dairy. The analysis covers the 18 year period going from 1990 to 2007 and includes eleven countries: Belgium, Denmark, France, Germany, Ireland, Italy, Luxemburg, the Netherlands, Portugal, Spain, and the United Kingdom. Separate translog stochastic input distance frontiers are estimated for each country. Results show high technical efficiency averages and positive average rates of technological change. In addition, higher subsidy dependence and larger size are significantly associated with lower technical efficiency across all eleven countries.

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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 126846.

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Date of creation: 2012
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Handle: RePEc:ags:iaae12:126846

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Keywords: Subsidies; CAP; technical efficiency; technological progress; Europe; dairy production; input distance frontiers; Agricultural and Food Policy;

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