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Classical Horizontal Inequities in the Provision of Agricultural Income Support

  • Paul Allanson

This paper explores the redistributive effect of classical horizontal inequities induced by agricultural support policy. Within farm type horizontal inequity (HI) is associated with differences in the level of support received by farms of a given type and level of pre-support income, whereas between farm type HI arises from systematic differences in support levels between commodity regimes. The overall redistributive effect of HI in Scottish agriculture is shown to be substantial, though systematic discrimination between farm types proves not to be the major cause. The imperfect targeting of support revealed by the empirical findings has implications for the design of policy.

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Paper provided by Economic Studies, University of Dundee in its series Dundee Discussion Papers in Economics with number 177.

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Date of creation: Mar 2005
Date of revision:
Handle: RePEc:dun:dpaper:177
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  1. Aronson, J Richard & Johnson, Paul & Lambert, Peter J, 1994. "Redistributive Effects and Unequal Income Tax Treatment," Economic Journal, Royal Economic Society, vol. 104(423), pages 262-70, March.
  2. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
  3. Creedy, J. & Lambert, P.J. & van de Ven, J., 2001. "Close Equals and Calculation of the Vertical, Horizontal and Reranking Effects of Taxation," Department of Economics - Working Papers Series 781, The University of Melbourne.
  4. Lambert, P & Ramos, X, 1995. "Vertical redistribution and horizontal inequity," IFS Working Papers W95/01, Institute for Fiscal Studies.
  5. Juan Gabriel Rodríguez & Rafael Salas & Irene Perrote, 2004. "Partial Horizontal Inequity Orderings: A non-parametric Approach," Economic Working Papers at Centro de Estudios Andaluces E2004/01, Centro de Estudios Andaluces.
  6. John E. Floyd, 1965. "The Effects of Farm Price Supports on the Returns to Land and Labor in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 73, pages 148.
  7. Nanak C. Kakwani & Peter J. Lambert, 1999. "Measuring Income Tax Discrimination," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 27-31, February.
  8. Paul Allanson, 2003. "CAP Reform and the Distribution of Farm Income in Scotland {Revised}," Dundee Discussion Papers in Economics 147, Economic Studies, University of Dundee.
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