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Credit Market Imperfections and the Distribution of Policy Rents: The Common Agricultural Policy in the New EU Member States

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  • Pavel Ciaian
  • Johan F.M. Swinnen

Abstract

This article analyses how credit market imperfections affect the impacts of subsidies by analyzing the effects of agricultural subsidies in the new Eastern Member States of the European Union with a partial equilibrium model which integrates credit and land market imperfections. We show that credit constraints have important implications for the distribution of policy rents. Credit market imperfections may induce very different effects of direct payments and lump-sum transfers.

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Bibliographic Info

Paper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 18307.

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Length: 59 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:lic:licosd:18307

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Keywords: agricultural policy; imperfect credit markets; land market; policy rents.;

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References

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Citations

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Cited by:
  1. Pavel Ciaian & d’Artis Kancs, 2011. "The Impact Of Food Price Shock On Heterogeneous Credit Constrained Firms," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 82(2), pages 115-137, 06.
  2. Jean-Christophe Bureau & Louis-Pascal Mahé, 2009. "Cap Payments after 2013 and Rural Public Goods," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, December.
  3. d'Artis Kancs & Pavel Ciaian, 2008. "Factor Content of Agricultural Trade," EERI Research Paper Series EERI_RP_2008_05, Economics and Econometrics Research Institute (EERI), Brussels.
  4. Ciaian, Pavel & Kancs, D’Artis, 2011. "The Impact of Market Imperfections on Heterogeneous Firm Output, Productivity, and Profit," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 39(1).

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