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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.

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File URL: http://www.dundee.ac.uk/media/dundeewebsite/economicstudies/documents/discussion/DDPE_188.pdf
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Bibliographic Info

Paper provided by Economic Studies, University of Dundee in its series Dundee Discussion Papers in Economics with number 188.

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Length: 30 pages
Date of creation: Jun 2006
Date of revision:
Handle: RePEc:dun:dpaper:188

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Keywords: Income redistribution; Agricultural Policy; Scotland;

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References

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  1. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
  2. Paul Allanson, 2005. "The Impact of Farm Income Support on Absolute Inequality," Dundee Discussion Papers in Economics 178, Economic Studies, University of Dundee.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
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Citations

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Cited by:
  1. 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.
  2. 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.
  3. 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.
  4. Franz Sinabell & Erwin Schmid & Markus F. Hofreither, 2008. "Exploring the Distribution of Direct Payments of the Common Agricultural Policy," WIFO Working Papers 330, WIFO.
  5. 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.
  6. Severini, Simone & Tantari, A., 2012. "How direct payments and their reform have affected farm income inequality in Italy?," Congress Papers 124099, Italian Association of Agricultural and Applied Economics (AIEAA).
  7. 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.
  8. 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.
  9. 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.

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