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Exploring the Distribution of Direct Payments of the Common Agricultural Policy

Author

Listed:
  • Franz Sinabell

    (WIFO)

  • Erwin Schmid
  • Markus F. Hofreither

Abstract

Direct payments are the most important expenditure of the Common Agricultural Policy. They are mostly in the form of decoupled direct payments which are intended to be allocatively neutral. Increasing volumes of such transfers imply that distributive aspects of CAP expenditures become more important. This paper looks at this issue by calculating various measures of concentration based on statistics on recipients of direct payments covering the period of 2000 to 2006. The findings are evaluated in the context of the objectives of the CAP and the review of the financial framework, due to be discussed in late 2008.

Suggested Citation

  • Franz Sinabell & Erwin Schmid & Markus F. Hofreither, 2008. "Exploring the Distribution of Direct Payments of the Common Agricultural Policy," WIFO Working Papers 330, WIFO.
  • Handle: RePEc:wfo:wpaper:y:2008:i:330
    as

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    File URL: http://www.wifo.ac.at/wwa/pubid/33500
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    References listed on IDEAS

    as
    1. Paul Allanson, 2007. "Classical Horizontal Inequities in the Provision of Agricultural Income Support," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(4), pages 656-671.
    2. Paul Allanson & Benedetto Rocchi, 2006. "An analysis of the redistributive effects of agricultural policy in Tuscany with comparative results for Scotland," Dundee Discussion Papers in Economics 193, Economic Studies, University of Dundee.
    3. Rothschild, Michael & Stiglitz, Joseph E., 1973. "Some further results on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 188-204, April.
    4. Olson, Mancur, Jr, 1969. "The Principle of "Fiscal Equivalence": The Division of Responsibilities among Different Levels of Government," American Economic Review, American Economic Association, vol. 59(2), pages 479-487, May.
    5. Mary Keeney, 2000. "The Distributional Impact of Direct Payments on Irish Farm Incomes," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 252-265.
    6. Rasche, R H, et al, 1980. "Functional Forms for Estimating the Lorenz Curve: Comment," Econometrica, Econometric Society, vol. 48(4), pages 1061-1062, May.
    7. Paul Allanson, 2006. "The Redistributive Effects of Agricultural Policy on Scottish Farm Incomes," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(1), pages 117-128, March.
    8. Paul Allanson, 2008. "On the Characterisation and Measurement of the Redistributive Effect of Agricultural Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(1), pages 169-187, February.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Piet, Laurent, 2016. "Recent trends in the distribution of farm sizes in the EU," 149th Seminar, October 27-28, 2016, Rennes, France 245075, European Association of Agricultural Economists.
    2. S. Severini & A. Tantari, 2015. "Which factors affect the distribution of direct payments among farmers in the EU Member States?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(1), pages 25-48, February.
    3. Markus F. Hofreither & Franz Sinabell, 2014. "Common Agricultural Policy 2014 to 2020," WIFO Monatsberichte (monthly reports), WIFO, vol. 87(3), pages 213-222, March.
    4. Ciliberti, Stefano & Frascarelli, Angelo, 2015. "The role of CAP in enhancing farm incomes: the redistributive effect of direct payments in Italy," 147th Seminar, October 7-8, 2015, Sofia, Bulgaria 212244, European Association of Agricultural Economists.
    5. N. N., 2014. "WIFO-Monatsberichte, issue 3/2014," WIFO Monatsberichte (monthly reports), WIFO, vol. 87(3), March.
    6. Loughrey, Jason & Donnellan, Trevor & Lennon, John, 2016. "The Inequality of Farmland Size in Western Europe," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236341, Agricultural Economics Society.

    More about this item

    Keywords

    common agricultural policy; distribution of transfers; single farm payments; direct payments;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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