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Exploring the distribution of direct payments of the Common Agricultural Policy

Author

Listed:
  • Franz Sinabell

    ()

  • Erwin Schmid

    ()

  • Markus Hofreither

    ()

Abstract

Direct payments are the most important expenditure of the Common Agricultural Policy (CAP). They are mostly spent on decoupled direct payments which are intended to be allocatively neutral. Increasing volumes of such transfers imply that distributive aspects of CAP expenditures become more important. This article looks at this issue by calculating various measures of concentration based on statistics on recipients of direct payments in EU27 in the period from 2000 to 2010. The findings are evaluated in the context of the objectives of the CAP and the reform proposals of the EU Commission from October 2011. It seems that country specific factors determine the concentration of direct payments and its change over time. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Franz Sinabell & Erwin Schmid & Markus Hofreither, 2013. "Exploring the distribution of direct payments of the Common Agricultural Policy," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 40(2), pages 325-341, May.
  • Handle: RePEc:kap:empiri:v:40:y:2013:i:2:p:325-341
    DOI: 10.1007/s10663-012-9194-7
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    References listed on IDEAS

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    1. Paul Allanson, 2007. "Classical Horizontal Inequities in the Provision of Agricultural Income Support," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(4), pages 656-671.
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    4. Rothschild, Michael & Stiglitz, Joseph E., 1973. "Some further results on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 188-204, April.
    5. Paul Allanson, 2008. "On the Characterisation and Measurement of the Redistributive Effect of Agricultural Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(1), pages 169-187, February.
    6. Olson, Mancur, Jr, 1969. "The Principle of "Fiscal Equivalence": The Division of Responsibilities among Different Levels of Government," American Economic Review, American Economic Association, vol. 59(2), pages 479-487, May.
    7. Mary Keeney, 2000. "The Distributional Impact of Direct Payments on Irish Farm Incomes," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 252-265, May.
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    Citations

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    Cited by:

    1. Piet, Laurent, 2016. "Recent trends in the distribution of farm sizes in the EU," 149th Seminar, October 27-28, 2016, Rennes, France 245075, European Association of Agricultural Economists.
    2. Ciliberti, Stefano & Frascarelli, Angelo, 2015. "The role of CAP in enhancing farm incomes: the redistributive effect of direct payments in Italy," 147th Seminar, October 7-8, 2015, Sofia, Bulgaria 212244, European Association of Agricultural Economists.
    3. repec:wfo:wstudy:61986 is not listed on IDEAS
    4. S. Severini & A. Tantari, 2015. "Which factors affect the distribution of direct payments among farmers in the EU Member States?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(1), pages 25-48, February.
    5. N. N., 2014. "WIFO-Monatsberichte, Heft 3/2014," WIFO Monatsberichte (monthly reports), WIFO, vol. 87(3), March.
    6. Markus F. Hofreither & Franz Sinabell, 2014. "Die Gemeinsame Agrarpolitik 2014 bis 2020," WIFO Monatsberichte (monthly reports), WIFO, vol. 87(3), pages 213-222, March.
    7. repec:gam:jsusta:v:11:y:2019:i:12:p:3462-:d:242522 is not listed on IDEAS
    8. repec:spr:agfoec:v:6:y:2018:i:1:d:10.1186_s40100-018-0113-5 is not listed on IDEAS
    9. Piet, Laurent, 2017. "Concentration of the agricultural production in the EU: the two sides of a coin," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261439, European Association of Agricultural Economists.
    10. Loughrey, Jason & Donnellan, Trevor & Lennon, John, 2016. "The Inequality of Farmland Size in Western Europe," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236341, Agricultural Economics Society.
    11. Loughrey, Jason James & Donnellan, Trevor, 2017. "Inequality and Concentration in Farmland Size: A Regional Analysis for Western Europe," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261112, European Association of Agricultural Economists.

    More about this item

    Keywords

    Common agricultural policy; Distribution of transfers; Single farm payments; Direct payments; Q12; Q18; Q24; Q28;

    JEL classification:

    • 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
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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