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Direct payments to Japanese farmers: Do they reduce rice income inequality? Lessons for other Asian countries

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  • Nitta, Atomu
  • Yamamoto, Yasutaka
  • Kondo, Katsunobu
  • Sawauchi, Daisuke

Abstract

This study investigates the income-equalizing effect of direct payments on rice income inequality in Japan using the Gini decomposition and the concentration curve. The results indicate that the direct payments in Japan are highly concentrated but they nevertheless reduce rice income inequality. However, the equalizing effect of direct payments is less than that in other countries because the Japanese payments are linked to participation in an acreage reduction program and are not fully decoupled. To pursue greater income equality, policymakers should decouple the payments and introduce mechanisms to decrease or limit the amount of support to the largest beneficiaries.

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  • Nitta, Atomu & Yamamoto, Yasutaka & Kondo, Katsunobu & Sawauchi, Daisuke, 2020. "Direct payments to Japanese farmers: Do they reduce rice income inequality? Lessons for other Asian countries," Journal of Policy Modeling, Elsevier, vol. 42(5), pages 968-981.
  • Handle: RePEc:eee:jpolmo:v:42:y:2020:i:5:p:968-981
    DOI: 10.1016/j.jpolmod.2020.02.006
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    More about this item

    Keywords

    Income inequality; Direct payments; Rice income; Gini decomposition; Japan;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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