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On the Comparative Evaluation of Agricultural Income Distributions in the European Union

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  • Allanson, Paul
  • Hubbard, Lionel

Abstract

The paper reports a set of operational rules for ranking income distributions that could be used, given appropriate data, to address a range of policy issues concerning the economic welfare of the agricultural community, the comparability of agricultural and non-agricultural incomes, and the extent and depth of poverty in farming. The rules are based on stochastic dominance procedures and are consistent with social preferences for higher incomes and a more equal distribution of income. Their application is illustrated by means of a comparative analysis of the farm family income situation in the member states of the European Union based on Farm Accountancy Data Network (FADN) data. The inadequacy of FADN data as a basis for inferences about welfare and poverty of farm households is stressed. Copyright 1999 by Oxford University Press.

Suggested Citation

  • Allanson, Paul & Hubbard, Lionel, 1999. "On the Comparative Evaluation of Agricultural Income Distributions in the European Union," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 26(1), pages 1-17, March.
  • Handle: RePEc:oup:erevae:v:26:y:1999:i:1:p:1-17
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    References listed on IDEAS

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    1. Soares, Fernando Brito, 1988. "Some Reflections on the Reform of CAP," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 15(1), pages 109-112.
    2. Howes, Stephen, 1996. "The Influence of Aggregation on the Ordering of Distributions," Economica, London School of Economics and Political Science, vol. 63(250), pages 253-272, May.
    3. Bergmann, Denis, 1984. "North-South Balances and Conflicts within the Community," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 11(2), pages 151-157.
    4. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
    5. Foster, James E & Shorrocks, Anthony F, 1988. "Poverty Orderings," Econometrica, Econometric Society, vol. 56(1), pages 173-177, January.
    6. Foster, James E. & Shorrocks, Anthony F., 1988. "Inequality and poverty orderings," European Economic Review, Elsevier, vol. 32(2-3), pages 654-661, March.
    7. Zioganas, Christos M, 1988. "Defining and Determining a 'Fair' Standard of Living for the Farm Family," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 15(1), pages 55-65.
    8. John A. Bishop & John P. Formby & W. James Smith, 1993. "International Comparisons of Welfare and Poverty: Dominance Orderings for Ten Countries," Canadian Journal of Economics, Canadian Economics Association, vol. 26(3), pages 707-726, August.
    9. Willig, Robert D, 1981. "Social Welfare Dominance," American Economic Review, American Economic Association, vol. 71(2), pages 200-204, May.
    10. Kakwani, Nanak, 1993. "Statistical Inference in the Measurement of Poverty," The Review of Economics and Statistics, MIT Press, vol. 75(4), pages 632-639, November.
    11. Rubin Saposnik, 1981. "Rank-dominance in income distributions," Public Choice, Springer, vol. 36(1), pages 147-151, January.
    12. Beach, Charles M. & Chow, K. Victor & Formby, John P. & Slotsve, George A., 1994. "Statistical inference for decile means," Economics Letters, Elsevier, vol. 45(2), pages 161-167, June.
    13. Frank A. Cowell & Fatemeh Mehta, 1982. "The Estimation and Interpolation of Inequality Measures," Review of Economic Studies, Oxford University Press, vol. 49(2), pages 273-290.
    14. Dasgupta, Partha & Sen, Amartya & Starrett, David, 1973. "Notes on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 180-187, April.
    15. Charles M. Beach & Russell Davidson, 1983. "Distribution-Free Statistical Inference with Lorenz Curves and Income Shares," Review of Economic Studies, Oxford University Press, vol. 50(4), pages 723-735.
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    Cited by:

    1. Gundersen, Craig, 2002. "The Well-Being and the Decisions of Farm Households: The Uses of Cross-Country Comparisons," Workshop on the Farm Household-Firm Unit: Its Importance in Agriculture and Implications for Statistics, April 12-13, 2002, Wye Campus,Imperial College 15724, International Agricultural Policy Reform and Adjustment Project (IAPRAP).
    2. Hopkins, Jeffrey W. & Morehart, Mitchell J., 2000. "Distributional Analysis Of U.S. Farm Household Income," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36517, Western Agricultural Economics Association.
    3. Hill, Berkeley, 2005. "Institutional Units and Agricultural Statistics," 94th Seminar, April 9-10, 2005, Ashford, UK 24410, European Association of Agricultural Economists.

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