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Targeting “Real Farmers” With Reformed Cap Payments: An Analysis For Italy


  • Rocchi, Benedetto


A multi-sector model is used to assess the targeting of CAP payments in Italy, according with alternative definitions of the “real farmers” institutional sector. The model is based on a Social Accounting Matrix of the Italian economy, properly adapted to represent the process of income formation and distribution in agriculture. The accounting framework has been integrated with a set of microeconomic information from the Farm Business Survey, a sample of agricultural holdings representative of the whole industry in Italy. The effects of changes in CAP payments have been assessed through a process in which impacts moves from the micro to the macro module of the model and return, in an iterative way. A vector of final income increase for each household included in the survey is obtained and used to reclassify impacts according to alternative definition of the real farmer sector. Results show that the distributive structure of the Italian agriculture as well as the way the policy is implemented are likely to affect the targeting of payments under alternative definitions of the beneficiary group.

Suggested Citation

  • Rocchi, Benedetto, 2008. "Targeting “Real Farmers” With Reformed Cap Payments: An Analysis For Italy," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44817, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa109:44817

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    References listed on IDEAS

    1. Magdalinos, Michael A, 1988. "The Local Power of the Tests of Overidentifying Restrictions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(3), pages 509-524, August.
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    3. Michael F. Förster, 1994. "Measurement of Low Incomes and Poverty in A Perspective of International Comparisons," OECD Labour Market and Social Policy Occasional Papers 14, OECD Publishing.
    4. Chatelain, Jean-Bernard, 2007. "Improving consistent moment selection procedures for generalized method of moments estimation," Economics Letters, Elsevier, vol. 95(3), pages 380-385, June.
    5. Hausman, Jerry A & Taylor, William E, 1981. "Panel Data and Unobservable Individual Effects," Econometrica, Econometric Society, vol. 49(6), pages 1377-1398, November.
    6. Donald W. K. Andrews, 1999. "Consistent Moment Selection Procedures for Generalized Method of Moments Estimation," Econometrica, Econometric Society, vol. 67(3), pages 543-564, May.
    7. Gardner, Bruce L, 1992. "Changing Economic Perspectives on the Farm Problem," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 62-101, March.
    8. Bruce L. Gardner, 2000. "Economic Growth and Low Incomes in Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1059-1074.
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    More about this item


    Common Agricultural Policy; targeting; income distribution; social accounting matrix; Agricultural and Food Policy; Research Methods/ Statistical Methods; Q18 agricultural policy; D57 input-output tables and analysis; D30 distribution general;

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • D30 - Microeconomics - - Distribution - - - General

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