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On the characterisation and measurement of the redistributive effects of agricultural policy

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  • Paul Allanson

Abstract

This paper provides a characterisation of the redistributive effects of agricultural policy, which yields consistent measures of horizontal inequities in the provision of support arising from both unequal treatment of pre-transfer income equals and systematic reranking of pretransfer income unequals. An illustrative study shows that the distribution of support would have reduced farm income inequality in Scotland but for the adverse redistributive consequences of horizontal inequities, although neither systematic discrimination between farm types nor systematic reranking proves to be the major source of such inequities. The imperfect targeting of support revealed by the empirical findings has implications for policy design.

Suggested Citation

  • 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.
  • Handle: RePEc:dun:dpaper:188
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    References listed on IDEAS

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    1. 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.
    2. Paul Allanson & Benedetto Rocchi, 2006. "An analysis of the redistributive effects of agricultural policy in Tuscany with comparative results for Scotland," Dundee Discussion Papers in Economics 193, Economic Studies, University of Dundee.
    3. Ahearn, Mary & Johnson, Jim & Strickland, Roger, 1985. "The Distribution Of Income And Wealth Of Farm Operator Households," 1985 Annual Meeting, August 4-7, Ames, Iowa 278657, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    5. 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.
    6. Juan Gabriel Rodríguez & Rafael Salas & Irene Perrote, 2005. "Partial Horizontal Inequity Orderings: A Non‐parametric Approach," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(3), pages 347-368, June.
    7. Jean‐Yves Duclos & Peter J. Lambert, 2000. "A normative and statistical approach to measuring classical horizontal inequity," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 33(1), pages 87-113, February.
    8. 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, March.
    9. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931, Decembrie.
    10. Justin Van De Ven & John Creedy & Peter J. Lambert, 2001. "Close Equals and Calculation of the Vertical, Horizontal and Reranking Effects of Taxation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(3), pages 381-394, July.
    11. Lerman, Robert I. & Yitzhaki, Shlomo, 1989. "Improving the accuracy of estimates of Gini coefficients," Journal of Econometrics, Elsevier, vol. 42(1), pages 43-47, September.
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    Cited by:

    1. Robert Finger & Nadja El Benni, 2021. "Farm income in European agriculture: new perspectives on measurement and implications for policy evaluation," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 48(2), pages 253-265.
    2. Robert Ackrill, 2008. "The CAP and its Reform - Half a Century of Change?," EuroChoices, The Agricultural Economics Society, vol. 7(SpecialIs), pages 13-21, August.
    3. Severini, Simone & Tantari, Antonella, 2013. "The effect of the EU farm payments policy and its recent reform on farm income inequality," Journal of Policy Modeling, Elsevier, vol. 35(2), pages 212-227.
    4. Severini, Simone & Tantari, A., 2012. "How direct payments and their reform have affected farm income inequality in Italy?," 2012 First Congress, June 4-5, 2012, Trento, Italy 124099, Italian Association of Agricultural and Applied Economics (AIEAA).
    5. Franz Sinabell & Erwin Schmid & Markus Hofreither, 2013. "Exploring the distribution of direct payments of the Common Agricultural Policy," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 40(2), pages 325-341, May.
    6. Paul Allanson & Kalina Kasprzyk & Andrew P. Barnes, 2017. "Income Mobility and Income Inequality in Scottish Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(2), pages 471-493, June.
    7. Ewa Kiryluk-Dryjska & Agnieszka Baer-Nawrocka, 2021. "Regional Differences in Benefits from the EU Common Agricultural Policy in Poland and Their Policy Implications," Agriculture, MDPI, vol. 11(4), pages 1-14, March.
    8. Nitta, Atomu & Yamamoto, Yasutaka & Kondo, Katsunobu & Sawauchi, Daisuke, 2020. "Direct payments to Japanese farmers: Do they reduce rice income inequality? Lessons for other Asian countries," Journal of Policy Modeling, Elsevier, vol. 42(5), pages 968-981.
    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. 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.
    11. Deppermann, Andre & Offermann, Frank & Grethe, Harald, 2016. "Redistributive effects of CAP liberalisation: From the sectoral level to the single farm," Journal of Policy Modeling, Elsevier, vol. 38(1), pages 26-43.
    12. 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.
    13. Laurent Piet & M Benoit & V Chatellier & K. Hervé Dakpo & N Delame & Yann Desjeux & P Dupraz & M Gillot & Philippe Jeanneaux & C Laroche-Dupraz & A Ridier & E Samson & P Veysset & P Avril & C Beaudoui, 2020. "Hétérogénéité, déterminants et trajectoires du revenu des agriculteurs français," Working Papers hal-02877320, HAL.
    14. Elek, Sandor & Ferto, Imre & Forgacs, Csaba, 2008. "Who recieve rural development measures in Hungary?," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44255, European Association of Agricultural Economists.
    15. Severini, Simone & Tantari, Antonella, 2014. "The contribution of different off-farm income sources and government payments to regional income inequality among farm households in Italy," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 3(2), pages 1-17, August.
    16. A. Palestini & G. Pignataro, 2013. "A multi-factor inequality approach to a transfer scheme: the case of Common Agricultural Policy," Working Papers wp891, Dipartimento Scienze Economiche, Universita' di Bologna.
    17. Deppermann, Andre & Offermann, Frank & Grethe, Harald, 2014. "Income effects of EU biofuel policies in Germany," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182803, European Association of Agricultural Economists.
    18. José-Luis Alfaro-Navarro & María-Encarnación Andrés-Martínez, 2021. "A longitudinal and cross-sectional analysis of the distribution of Common Agricultural Policy aids in European countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(9), pages 351-362.
    19. Paul Allanson & Benedetto Rocchi, 2006. "An analysis of the redistributive effects of agricultural policy in Tuscany with comparative results for Scotland," Dundee Discussion Papers in Economics 193, Economic Studies, University of Dundee.
    20. Berkeley Hill, 2008. "Some Economics of Public Statistics," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(3), pages 387-420, September.
    21. Severini, Simone & Tantari, Antonella, 2015. "The distributional impact of agricultural policy tools on Italian farm household incomes," Journal of Policy Modeling, Elsevier, vol. 37(1), pages 124-135.

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    More about this item

    Keywords

    Income redistribution; Agricultural Policy; Scotland;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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