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Econometric Analysis of the Effects of Subsidies on Farm Production in Case of Endogenous Input Quantities

Author

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  • Henningsen, Arne
  • Kumbhakar, Subal C.
  • Lien, Gudbrand D.

Abstract

The effect of subsidies on farm production has been a major topic in agricultural economics for several decades. We present a new approach for analyzing the effects of different types of coupled and decoupled subsidies on farm production with econometric methods. In contrast to most previous studies, our approach is entirely based on a theoretical microeconomic model, explicitly allows subsidies to have an impact on input use, and takes linkages between the farm and the farm household into account.

Suggested Citation

  • Henningsen, Arne & Kumbhakar, Subal C. & Lien, Gudbrand D., 2011. "Econometric Analysis of the Effects of Subsidies on Farm Production in Case of Endogenous Input Quantities," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114548, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae11:114548
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    Cited by:

    1. Lakner, Sebastian & Breustedt, Gunnar, 2015. "Efficiency analysis of organic farming systems- a review of methods, topics, results, and conclusions," 2015 Conference, August 9-14, 2015, Milan, Italy 212025, International Association of Agricultural Economists.
    2. Trnkova, Gabriela & Mala, Zdenka & Vasilenko, Alexandr, 2012. "Analysis of the Effects of Subsidies on the Economic Behavior of Agricultural Businesses Focusing on Animal Production," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 4(4 Special), pages 1-12, December.
    3. Lakner, Sebastian & Kirchweger, Stefan & Hoop, Daniel & Brümmer, Bernhard & Kantelhardt, Jochen, 2015. "Impact of diversification on technical efficiency of organic farming in Switzerland, Austria and Southern Germany," DARE Discussion Papers 1508, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    4. Pavel Ciaian & d'Artis Kancs & Sergio Gomez y Paloma, 2010. "Distributional Effects of CAP Subsidies: Micro Evidence from the EU," EERI Research Paper Series EERI_RP_2010_05, Economics and Econometrics Research Institute (EERI), Brussels.
    5. Lakner, Sebastian & Kirchweger, Stefan & Hoop, Daniel & Brümmer, Bernhard & Kantelhardt, Jochen, 2014. "Technical Efficiency of Organic Farming in the Alpine Region – the Impact of Farm Structures and Policies," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182763, European Association of Agricultural Economists.
    6. Daglish, Toby & Robertson, Oliver & Tripe, David & Weill, Laurent, 2015. "Translog Cost Function Estimation: Banking Efficiency," Working Paper Series 4180, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.

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    Keywords

    Agricultural and Food Policy; Productivity Analysis;

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