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Modelling Regional Agricultural Output Adjustments in Scotland in Response to CAP Reform

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  • Revoredo-Giha, Cesar
  • Leat, Philip M.K.
  • Milne, Catherine E.

Abstract

The purpose of the paper is to present an agricultural supply model for Scotland used to estimate regional changes in agricultural outputs due to the 2003 Common Agricultural Policy (CAP) reform. Supply functions were estimated for several farm types based on generalised trans-logarithmic multiproduct cost functions (Caves, Christensen and Tretheway, 1981). The data used for the estimation were an unbalanced panel dataset constructed using farm level data from the Scottish Government’s Farm Accounts Scheme (FAS) survey. Using the estimated supply adjustments, individual farm level responses to subsidy and price changes were aggregated using agricultural census weights to estimate the output changes for different regions

Suggested Citation

  • Revoredo-Giha, Cesar & Leat, Philip M.K. & Milne, Catherine E., 2008. "Modelling Regional Agricultural Output Adjustments in Scotland in Response to CAP Reform," Working Papers 61111, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    • Handle: RePEc:ags:srlewp:61111
    DOI: 10.22004/ag.econ.61111
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    References listed on IDEAS

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    1. Pierani, Pierpaolo & Rizzi, Pier Luigi, 2003. "Technology and efficiency in a panel of Italian dairy farms: an SGM restricted cost function approach," Agricultural Economics, Blackwell, vol. 29(2), pages 195-209, October.
    2. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275.
    3. Atkinson, Scott E. & Cornwell, Christopher, 1993. "Measuring technical efficiency with panel data : A dual approach," Journal of Econometrics, Elsevier, vol. 59(3), pages 257-261, October.
    4. Caves, Douglas W & Christensen, Laurits R & Tretheway, Michael W, 1980. "Flexible Cost Functions for Multiproduct Firms," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 477-481, August.
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    Cited by:

    1. Lobley, Matt & Butler, Allan, 2010. "The impact of CAP reform on farmers' plans for the future: Some evidence from South West England," Food Policy, Elsevier, vol. 35(4), pages 341-348, August.

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