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Exploring the Distribution of Direct Payments of the Common Agricultural Policy

  • Franz Sinabell

    (WIFO)

  • Erwin Schmid
  • Markus F. Hofreither

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.

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Paper provided by WIFO in its series WIFO Working Papers with number 330.

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Length: 27 pages
Date of creation: 02 Sep 2008
Date of revision:
Handle: RePEc:wfo:wpaper:y:2008:i:330
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  1. 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.
  2. 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, 02.
  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. Paul Allanson, 2005. "Classical Horizontal Inequities in the Provision of Agricultural Income Support," Dundee Discussion Papers in Economics 177, Economic Studies, University of Dundee.
  5. Rasche, R H, et al, 1980. "Functional Forms for Estimating the Lorenz Curve: Comment," Econometrica, Econometric Society, vol. 48(4), pages 1061-62, May.
  6. 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 479-87, May.
  7. 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.
  8. 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, 03.
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