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Methodological Approach for Evaluation ff Investment Behavior of Farmers in Different Development Scenarios

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  • Sergo Gomez i Paloma
  • Vittorio Galerani
  • Meri Ragi
  • Davide Viagi
  • Dimitar Nikolov

Abstract

Methodological instruments are presented for analysis of the impact of the Common agricultural policy (CAP) on investment behavior of farms for a long-term period based on the direct payments for a unit of area. To achieve the set aim a methodology is proposed which will be used to conduct an ex-ante analysis of investment behavior of farmers towards unfavorable rural areas which are grouped in several types of farms. Scenarios are developed to measure the impact of the CAP on investment behavior of producers in Bulgarian agriculture. The analysis of farmers’ investment behavior and the evaluation of the impact of different CAP scenarios will assist for revealing the relations between the goals of the policy and the behavior of farmers.

Suggested Citation

  • Sergo Gomez i Paloma & Vittorio Galerani & Meri Ragi & Davide Viagi & Dimitar Nikolov, 2008. "Methodological Approach for Evaluation ff Investment Behavior of Farmers in Different Development Scenarios," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 81-96.
    • Handle: RePEc:bas:econth:y:2008:i:5:p:81-96
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    References listed on IDEAS

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    1. Eli Feinerman & Jack Peerlings, 2005. "Uncertain Land Availability and Investment Decisions: The Case of Dutch Dairy Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(1), pages 59-80, March.
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    4. Carl Johan Lagerkvist, 2005. "Agricultural policy uncertainty and farm level adjustments--the case of direct payments and incentives for farmland investment," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(1), pages 1-23, March.
    5. Happe, Kathrin, 2004. "Agricultural policies and farm structures: Agent-based modelling and application to EU-policy reform," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 30, number 14945.
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    Cited by:

    1. O’Toole, Conor & Hennessy, Thia, 2015. "Do decoupled payments affect investment financing constraints? Evidence from Irish agriculture," Food Policy, Elsevier, vol. 56(C), pages 67-75.

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    More about this item

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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