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Modelling the Impact of Agricultural Policies on Farm Investments under Uncertainty: The Case of the CAP Arable Crop Regime

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Abstract

This paper is part of the OECD project on decoupling and follows the analytical framework defined in OECD (2001). The main objective is to estimate the importance of the dynamic investment effects of area payments using farm level data from the Italian FADN survey. It investigates the investment response by crop producers under the assumption that they are risk averse, and there is uncertainty concerning prices. A dynamic econometric model is estimated. Investment is defined as current expenditure on machinery and buildings for crop production. This paper uses the same data as OECD (2002) and makes estimations and simulations in a way that can be compared with the results obtained in that paper.

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  • Oecd, 2006. "Modelling the Impact of Agricultural Policies on Farm Investments under Uncertainty: The Case of the CAP Arable Crop Regime," OECD Papers, OECD Publishing, vol. 5(11), pages 1-35.
    • Handle: RePEc:oec:packaa:5l9zk42n1347
    DOI: 10.1787/oecd_papers-v5-art48-en
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    Cited by:

    1. Guastella, Giovanni & Moro, Daniele & Sckokai, Paolo & Veneziani, Mario, 2013. "Simulation Results on the Impact of Changes in the Main EU Policy Tools on Farm Investment Behaviour," Factor Markets Working Papers 168, Centre for European Policy Studies.
    2. Guastella, G. & Moro, D. & Sckokai, P. & Veneziani, M., 2013. "CAP Effects on Agricultural Investment Demand in Europe," 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152256, International Agricultural Trade Research Consortium.
    3. Guastella, Giovanni & Moro, Daniele & Sckokai, Paolo & Veneziani, Mario, 2013. "Investment behaviour of EU arable crop farms in selected EU countries and the impact of policy reforms," Working papers 152083, Factor Markets, Centre for European Policy Studies.

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