Land Market Imperfections and Agricultural Policy Impacts in the New EU Member States: A Partial Equilibrium Analysis
This article analyses how transaction costs and imperfect competition in the land market affect the welfare effects of agricultural subsidies in the new Eastern Member States of the European Union. Benefits of land subsidies end up with landowners in new Eastern Member States also with imperfections in the new Eastern Member States land markets. With unequal access to subsidies, small tenant farmers may even lose out from the subsidies. Decoupling of payments shifts policy rents to farmers, but constrains productivity-enhancing restructuring. Using reserve entitlements to mitigate this effect reduces the intended benefits on distortions and target efficiency. Copyright 2006, Oxford University Press.
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Volume (Year): 88 (2006)
Issue (Month): 4 ()
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- Erik Mathijs & Johan F. M. Swinnen, 2001. "Production Organization And Efficiency During Transition: An Empirical Analysis Of East German Agriculture," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 100-107, February.
- Rizov, Marian & Swinnen, Johan F.M., 2004. "Human capital, market imperfections, and labor reallocation in transition," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 745-774, December.
- Csaki, Csaba & Lerman, Zvi, 2001. "Land And Farm Structure In Poland," Discussion Papers 14998, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
- Johan Swinnen & Liesbet Vranken, 2003. "Land Rental Markets and Household Farms in Transition: Theory and Evidence from Hungary," LICOS Discussion Papers 12903, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Mathijs, Erik & Swinnen, Johan F M, 1998. "The Economics of Agricultural Decollectivization in East Central Europe and the Former Soviet Union," Economic Development and Cultural Change, University of Chicago Press, vol. 47(1), pages 1-26, October.
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