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Classical Horizontal Inequities in the Provision of Agricultural Income Support

  • Paul Allanson

This article explores the redistributive effects of classical horizontal inequities induced by agricultural policy. Within-farm type horizontal inequity is associated with differences in the level of support received by farms of a given type and level of pre-support income. Between-farm type horizontal inequity arises from systematic differences in support levels between commodity regimes. The overall redistributive effect of such inequities in Scottish agriculture is shown to be substantial, though systematic discrimination between farm types is not the major cause. The imperfect targeting of support revealed by the empirical findings has implications for the design of policy. Copyright 2007, Oxford University Press.

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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
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Handle: RePEc:dun:dpaper:177
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  1. 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.
  2. David Neumark, 1987. "Employers' discriminatory behavior and the estimation of wage discrimination," Special Studies Papers 227, Board of Governors of the Federal Reserve System (U.S.).
  3. 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.
  4. 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.
  5. 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.
  6. Lambert, P & Ramos, X, 1995. "Vertical redistribution and horizontal inequity," IFS Working Papers W95/01, Institute for Fiscal Studies.
  7. 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.
  8. 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.
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