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Effectiveness Of Cross-Compliance Under Asymmetric Information And Differentiated Compliance Constraints

Author

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  • Raggi, Meri
  • Bartolini, Fabio
  • Gallerani, Vittorio
  • Viaggi, Davide

Abstract

The effects of cross-compliance depend on the strategies of participation/compliance of farmers, as well as on the ability of public administration to design appropriate policy mechanisms. The objective of this paper is to present a framework for the analysis of cross-compliance under asymmetric information with the option of differentiating commitments across farmers. The methodology is applied to a case study represented by the province of Bologna (Italy). The results show that, in the present conditions of control and sanctions, only a small share of farms is interested in complying with cross-compliance. The profitability of the choice of compliance/non-compliance depends mainly on the amount of single farm payment entitlements compared with the total land. The differentiation of restrictions across farmers, under relevant budget constraints for controls, appears a key strategic components in order to ensure the effectiveness of cross-compliance.

Suggested Citation

  • Raggi, Meri & Bartolini, Fabio & Gallerani, Vittorio & Viaggi, Davide, 2008. "Effectiveness Of Cross-Compliance Under Asymmetric Information And Differentiated Compliance Constraints," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44151, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae08:44151
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    File URL: http://purl.umn.edu/44151
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    References listed on IDEAS

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    1. Thomas L. Cox & Jean-Paul Chavas, 2001. "An Interregional Analysis of Price Discrimination and Domestic Policy Reform in the U.S. Dairy Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(1), pages 89-106.
    2. Markus Lips & Peter Rieder, 2005. "Abolition of Raw Milk Quota in the European Union: A CGE Analysis at the Member Country Level," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(1), pages 1-17.
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    Cited by:

    1. Pavel Ciaian & d’Artis Kancs & Johan Swinnen, 2010. "EU Land Markets and the Common Agricultural Policy," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 53(3), pages 1-31.

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    Keywords

    Cross-compliance; Asymmetric information; Single farm payment; Farm Management;

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