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The Impact of Subsidies on Persistent and Transient Technical Inefficiency: Evidence from Polish Dairy Farms

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  • Pisulewski, Andrzej
  • Marzec, Jerzy

Abstract

We investigate the impact of five types of subsidies granted under the European Union Common Agricultural Policy on the persistent and transient inefficiency of Polish dairy farms. Our research shows that coupled and environmental subsidies reduce transient technical inefficiency, while the opposite is true for Less Favoured Areas (LFA) and other rural subsidies. Simultaneously, environmental, LFA, and other rural subsidies increase persistent technical inefficiency. These results imply that the impact of each type of subsidy on technical efficiency can be different and that the effect of the particular type of subsidy can vary between transient and persistent technical inefficiency.

Suggested Citation

  • Pisulewski, Andrzej & Marzec, Jerzy, 2022. "The Impact of Subsidies on Persistent and Transient Technical Inefficiency: Evidence from Polish Dairy Farms," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 54(4), pages 561-582, November.
    • Handle: RePEc:cup:jagaec:v:54:y:2022:i:4:p:561-582_1
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    Cited by:

    1. Ryota Nakatani, 2024. "Food companies' productivity dynamics: Exploring the role of intangible assets," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 185-226, January.
    2. Piotr Bórawski & Aneta Bełdycka-Bórawska & Andrzej Parzonko & Tomasz Rokicki & Lisa Holden, 2022. "Changes in the comparative advantage of Polish dairy products," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(12), pages 464-475.

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