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Classical Horizontal Inequities in the Provision of Agricultural Income Support

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  • Paul Allanson

Abstract

This paper explores the redistributive effect of classical horizontal inequities induced by agricultural support policy. Within farm type horizontal inequity (HI) is associated with differences in the level of support received by farms of a given type and level of pre-support income, whereas between farm type HI arises from systematic differences in support levels between commodity regimes. The overall redistributive effect of HI in Scottish agriculture is shown to be substantial, though systematic discrimination between farm types proves not to be the major cause. The imperfect targeting of support revealed by the empirical findings has implications for the design of policy.

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Paper provided by Economic Studies, University of Dundee in its series Dundee Discussion Papers in Economics with number 177.

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Date of creation: Mar 2005
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Handle: RePEc:dun:dpaper:177

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  1. Lambert, P & Ramos, X, 1995. "Vertical redistribution and horizontal inequity," IFS Working Papers W95/01, Institute for Fiscal Studies.
  2. Nanak C. Kakwani & Peter J. Lambert, 1999. "Measuring Income Tax Discrimination," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 27-31, February.
  3. Aronson, J Richard & Johnson, Paul & Lambert, Peter J, 1994. "Redistributive Effects and Unequal Income Tax Treatment," Economic Journal, Royal Economic Society, vol. 104(423), pages 262-70, March.
  4. Creedy, J. & Lambert, P.J. & van de Ven, J., 2001. "Close Equals and Calculation of the Vertical, Horizontal and Reranking Effects of Taxation," Department of Economics - Working Papers Series 781, The University of Melbourne.
  5. Juan Gabriel Rodríguez & Rafael Salas & Irene Perrote, 2004. "Partial Horizontal Inequity Orderings: A non-parametric Approach," Economic Working Papers at Centro de Estudios Andaluces E2004/01, Centro de Estudios Andaluces.
  6. Paul Allanson, 2003. "CAP Reform and the Distribution of Farm Income in Scotland {Revised}," Dundee Discussion Papers in Economics 147, Economic Studies, University of Dundee.
  7. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
  8. John E. Floyd, 1965. "The Effects of Farm Price Supports on the Returns to Land and Labor in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 73, pages 148.
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Cited by:
  1. Allanson, Paul, 2005. "The Impact of Farm Income Support on Absolute Inequality," 94th Seminar, April 9-10, 2005, Ashford, UK 24432, European Association of Agricultural Economists.
  2. Sahrbacher, Amanda, 2012. "Impacts of CAP reforms on farm structures and performance disparities: An agent-based approach," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 65, number 65.
  3. 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).
  4. 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.
  5. Franz Sinabell & Erwin Schmid & Markus Hofreither, 2013. "Exploring the distribution of direct payments of the Common Agricultural Policy," Empirica, Springer, vol. 40(2), pages 325-341, May.
  6. Hansen, Heiko & Herrmann, Roland, 2012. "The two dimensions of policy impacts on economic cohesion: Concept and illustration for the CAP," Food Policy, Elsevier, vol. 37(4), pages 483-491.
  7. Elsholz, Rudiger & Harsche, Johannes, 2008. "Common Agricultural Policy Impacts on Farm Revenues," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44409, European Association of Agricultural Economists.
  8. Elsholz, Rudiger & Harsche, Johannes, 2011. "Price Changes, Policy Impacts and Instability in Farmers’ Revenues," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114342, European Association of Agricultural Economists.
  9. 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.
  10. Deppermann, Andre & Grethe, Harald & Offermann, Frank, 2011. "Distributional Effects of the CAP on Western German Farm Incomes and Regional Farm Income Disparity," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114442, European Association of Agricultural Economists.

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