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The Effect Of Price Reduction And Direct Income Support Policies On Agricultural Input Markets In Austria

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  • Chr. R. Weiss

Abstract

The purpose of this paper is to examine empirically the effects of a shift from price support to direct income policy on agricultural factor markets and aggregate output. By utilising an econometric model for the Austrian agricultural sector, it is argued that the main purpose of this policy change, which is to move producers away from making production decisions in response to income support policies and to facilitate their response to market signals (‘decoupling’), is only partially realised. Switching from price to direct income support would result in little reduction in output, but some positive secondary effects can be observed. Ecological goals could be realised by lessening the degree of industrialisation due to lowering the capital‐labour and intermediate input‐labour ratios.

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  • Chr. R. Weiss, 1992. "The Effect Of Price Reduction And Direct Income Support Policies On Agricultural Input Markets In Austria," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(1), pages 1-13, January.
    • Handle: RePEc:bla:jageco:v:43:y:1992:i:1:p:1-13
    DOI: 10.1111/j.1477-9552.1992.tb00193.x
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    Cited by:

    1. Cahill, Sean A., 1993. "Cap Reform: How Decoupled are the Compensatory Payments?," Working Papers 244085, Agriculture and Agri-Food Canada.

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