IDEAS home Printed from https://ideas.repec.org/a/ags/aolpei/146287.html
   My bibliography  Save this article

Analysis of the Effects of Subsidies on the Economic Behavior of Agricultural Businesses Focusing on Animal Production

Author

Listed:
  • Trnkova, Gabriela
  • Mala, Zdenka
  • Vasilenko, Alexandr

Abstract

Entry into the European Union and the acceptance of Common Agricultural Policy had a fundamental impact on the economic behavior of animal production businesses in the Czech Republic. Some authors have even reached the conclusion that the slump in animal production is the most prominent manifestation of Common Agricultural Policy. The submitted article quantifies the effect of subsidy policy on production, costs and technical efficiency of agricultural farms. It analyzes the economic behavior of businesses receiving subsidies and of businesses that did not receive subsidies. As part of the study, the microeconomic data of 173 animal production businesses are analyzed. The main methodological tool is the construction of production and cost functions. The effect of subsidy policy on technical efficiency was analyzed by way of the frontier production function model. The article was elaborated under one goal of research intention MSMT 6046070906 “Economics of Resources of Czech Agriculture and Their Efficient Use within Multifunctional Agri-Food Systems”.

Suggested Citation

  • Trnkova, Gabriela & Mala, Zdenka & Vasilenko, Alexandr, 2012. "Analysis of the Effects of Subsidies on the Economic Behavior of Agricultural Businesses Focusing on Animal Production," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 4(4 Special), pages 1-12, December.
  • Handle: RePEc:ags:aolpei:146287
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/146287/files/agris_on-line_2012_4_special_trnkova_mala_vasilenko.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Belen Iraizoz & Isabel Bardaji & Manuel Rapun, 2005. "The Spanish beef sector in the 1990s: impact of the BSE crisis on efficiency and profitability," Applied Economics, Taylor & Francis Journals, vol. 37(4), pages 473-484.
    2. Latruffe, Laure & Bravo-Ureta, Boris E. & Moreira, Victor H. & Desjeux, Yann & Dupraz, Pierre, 2011. "Productivity and Subsidies in European Union Countries: An Analysis for Dairy Farms Using Input Distance Frontiers," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114396, European Association of Agricultural Economists.
    3. Madau, Fabio A., 2007. "Technical Efficiency in Organic and Conventional Farming: Evidence from Italian Cereal Farms," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 8(1), pages 1-17, January.
    4. Zoltán Bakucs, Lajos & Fertő, Imre & Fogarasi, József, 2007. "Technical Efficiency of Hungarian Farms Before and After Accession," 100th Seminar, June 21-23, 2007, Novi Sad, Serbia and Montenegro 162366, European Association of Agricultural Economists.
    5. David Hadley, 2006. "Patterns in Technical Efficiency and Technical Change at the Farm-level in England and Wales, 1982-2002," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(1), pages 81-100, March.
    6. Lambarraa, Fatima & Kallas, Zein, 2009. "Subsidies and technical efficiency: An application of stochastic frontier and Random-effect Tobit models to LFA Spanish olive farms," 113th Seminar, September 3-6, 2009, Chania, Crete, Greece 58079, European Association of Agricultural Economists.
    7. Zhu, Xueqin & Karagiannis, Giannis & Oude Lansink, Alfons G.J.M., 2008. "Analyzing the impact of direct subsidies on the performance of the Greek Olive Farms with a non-monotonic efficiency effects model," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43612, European Association of Agricultural Economists.
    8. Henningsen, Arne & Kumbhakar, Subal C. & Lien, Gudbrand D., 2009. "Econometric Analysis of the Effects of Subsidies on Farm Production in Case of Endogenous Input Quantities," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49728, Agricultural and Applied Economics Association.
    9. Werner Kleinhanß & Carmen Murillo & Carlos San Juan & Stefan Sperlich, 2007. "Efficiency, subsidies, and environmental adaptation of animal farming under CAP," Agricultural Economics, International Association of Agricultural Economists, vol. 36(1), pages 49-65, January.
    10. Bokusheva, Raushan & Kumbhakar, Subal C. & Lehmann, Bernard, 2012. "The effect of environmental regulations on Swiss farm productivity," International Journal of Production Economics, Elsevier, vol. 136(1), pages 93-101.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Minviel, Jean Joseph & De Witte, Kristof, 2017. "The influence of public subsidies on farm technical efficiency: A robust conditional nonparametric approach," European Journal of Operational Research, Elsevier, vol. 259(3), pages 1112-1120.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aolpei:146287. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/fevszcz.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.