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Direct Payments and Land Rents: Evidence from New Member States

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  • Vranken, Liesbet
  • Van Herck, Kristine

Abstract

This Factor Markets Working Paper analyses the impact of increasing direct payments on land rents in six new EU member states in which agricultural subsidies largely increased as a result of their EU accession. The authors find that up to 25 eurocents per additional euro of direct payments is capitalised in land rents. In addition, the results show that capitalisation of direct payments is higher in more credit constrained markets, while capitalisation of direct payments is lower in countries where more land is used by corporate farms.

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Bibliographic Info

Paper provided by Centre for European Policy Studies in its series Factor Markets Working Papers with number 175.

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Length: 22 pages
Date of creation: Aug 2013
Date of revision:
Handle: RePEc:eps:fmwppr:175

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  1. Joe Dewbre & Jes�s Ant�n & Wyatt Thompton, 2001. "The Transfer Efficiency and Trade Effects of Direct Payments," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 83(5), pages 1204-1214.
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  6. Pavel Ciaian & d’Artis Kancs & Johan Swinnen, 2010. "EU Land Markets and the Common Agricultural Policy," EERI Research Paper Series EERI_RP_2010_47, Economics and Econometrics Research Institute (EERI), Brussels.
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  14. Chau, Nancy H. & de Gorter, Harry, 2001. "Disentandling the Consequences of Direct Payment Schemes in Agriculture on Fixed Costs, Exit Decisions and Output," Working Papers, Cornell University, Department of Applied Economics and Management 127663, Cornell University, Department of Applied Economics and Management.
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  17. Pavel Ciaian & d'Artis Kancs, 2009. "The Capitalisation of Area Payments into Farmland Rents: Micro Evidence from the New EU Member States," EERI Research Paper Series EERI_RP_2009_04, Economics and Econometrics Research Institute (EERI), Brussels.
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Cited by:
  1. Pavel Ciaian & d'Artis Kancs & Johan Swinnen, 2014. "The Impact of the 2013 CAP Reform on Land Capitalization," EERI Research Paper Series EERI RP 2014/07, Economics and Econometrics Research Institute (EERI), Brussels.
  2. Ciaian, Pavel & Kancs, d'Artis & Swinnen, Johan F.M. & Van Herck, Kristine & Vranken, Liesbet, 2012. "Key Issues and Developments in Farmland Rental Markets in EU Member States and Candidate Countries," Working Papers, Factor Markets, Centre for European Policy Studies 120248, Factor Markets, Centre for European Policy Studies.

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