IDEAS home Printed from https://ideas.repec.org/a/jns/jbstat/v227y2007i3p273-294n5.html
   My bibliography  Save this article

An Empirical Assessment of the EU Agricultural Policy Based on Firm Level Data

Author

Listed:
  • Murillo Carmen

    (Departamento de Economía, Universidad de Cantabria, Avda. Los Castros s/n, 39005 Santander, Spain)

  • San Juan Carlos

    (Departamento de Economía, Universidad Carlos III de Madrid, c/ Madrid 126, 28903 Getafe, Spain)

  • Sperlich Stefan

    (Institut für Statistik und Ökonometrie, Georg August Universität Göttingen, Platz der Göttinger Sieben 5, 37073 Göttingen, Germany)

Abstract

The study focuses on testing the hypothesis that the subsidy system of the Common Agricultural Reform in 1992 (CAP’92) drove to changes in farm efficiency towards the thereby claimed objectives. With sequential applications of semiparametric methods we succeed to identify the impact of the direct payments on environmental adaptation, productivity and efficiency before and after CAP’92 without restrictive model specifications. We find that the claimed objectives of the EU subvention policy were met only partly, but that the CAP’92 was, however, a step forward. Our case study uses large Spanish data sets of animal orientated farms. This paper applies non parametric methods for policy evaluation at firm level. The study focuses on testing the hypothesis that the subsidy system of the Common Agricultural Reform in 1992 (CAP’92) drove to changes in farm efficiency towards the thereby claimed objectives. We concentrate here on animal oriented farms, in particular cattle, pig, sheep and goat farms. The correct quantification of efficiency and productivity differentials due to CAP’92 is crucial for such a policy analysis as different models can easily lead to different conclusions. Using non parametric methods we do not need to specify the production function of the farms. With sequential applications of semiparametric methods we succeed to identify the impact of the direct payments on environmental adaptation, productivity and efficiency before and after CAP’92 without restrictive model specifications. We find that the claimed objectives of the EU subvention policy were met only partly, but that the CAP’92 was – at least partly – indeed a step forward in that sense. Our case study uses large Spanish data sets of animal orientated farms. This is justified, among other reasons, by the relevance of these farms for Mediterranean forest and grazing land preservation in Spain.

Suggested Citation

  • Murillo Carmen & San Juan Carlos & Sperlich Stefan, 2007. "An Empirical Assessment of the EU Agricultural Policy Based on Firm Level Data," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 227(3), pages 273-294, June.
    • Handle: RePEc:jns:jbstat:v:227:y:2007:i:3:p:273-294:n:5
    DOI: 10.1515/jbnst-2007-0305
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/jbnst-2007-0305
    Download Restriction: no
    File URL: https://libkey.io/10.1515/jbnst-2007-0305?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Robinson, Peter M, 1988. "Root- N-Consistent Semiparametric Regression," Econometrica, Econometric Society, vol. 56(4), pages 931-954, July.
    2. Werner Kleinhanß & Carmen Murillo & Carlos San Juan & Stefan Sperlich, 2007. "Efficiency, subsidies, and environmental adaptation of animal farming under CAP," Agricultural Economics, International Association of Agricultural Economists, vol. 36(1), pages 49-65, January.
    3. Jorgenson, Dale W. & Kuroda, Masahiro & Nishimizu, Mieko, 1987. "Japan-U.S. industry-level productivity comparisons, 1960-1979," Journal of the Japanese and International Economies, Elsevier, vol. 1(1), pages 1-30, March.
    4. Bullock, David S. & Salhofer, Klaus, 2003. "Judging agricultural policies: a survey," Agricultural Economics, Blackwell, vol. 28(3), pages 225-243, May.
    5. Antonio Alvarez & Carlos Arias, 2003. "Diseconomies of Size with Fixed Managerial Ability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 134-142.
    6. V. Ball & Jean-Christophe Bureau & Jean-Pierre Butault & Richard Nehring, 2001. "Levels of Farm Sector Productivity: An International Comparison," Journal of Productivity Analysis, Springer, vol. 15(1), pages 5-29, January.
    7. Ball, V. Eldon & Lovell, C.A. Knox & Luu, H. & Nehring, Richard F., 2004. "Incorporating Environmental Impacts in the Measurement of Agricultural Productivity Growth," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(3), pages 1-25, December.
    8. Jorgenson, Dale W & Nishimizu, Mieko, 1978. "U.S. and Japanese Economic Growth, 1952-1974: An International Comparison," Economic Journal, Royal Economic Society, vol. 88(352), pages 707-726, December.
    9. David Blandford & Joe Dewbre, 1994. "Structural Adjustment and Learning to Live Without Subsidies in OECD Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(5), pages 1047-1052.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hailemariam Teklewold, 2021. "How effective is Ethiopia’s agricultural growth program at improving the total factor productivity of smallholder farmers?," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(4), pages 895-912, August.
    2. Moro, Daniele & Sckokai, Paolo, 2013. "The impact of decoupled payments on farm choices: Conceptual and methodological challenges," Food Policy, Elsevier, vol. 41(C), pages 28-38.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:jns:jbstat:v:227:y:2007:i:3:p:273-294 is not listed on IDEAS
    2. Robert Inklaar & Marcel P. Timmer, 2012. "Productivity Convergence Across Industries and Countries: The Importance of Theory-based Measurement," Chapters, in: Matilde Mas & Robert Stehrer (ed.), Industrial Productivity in Europe, chapter 11, Edward Elgar Publishing.
    3. Thomas Triebs & Subal C. Kumbhakar, 2012. "Management Practice in Production," ifo Working Paper Series 129, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    4. Robert Inklaar & Marcel P. Timmer, 2014. "The Relative Price of Services," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 727-746, December.
    5. Salhofer, Klaus & Schmid, Erwin, 2004. "Distributive leakages of agricultural support: some empirical evidence," Agricultural Economics, Blackwell, vol. 30(1), pages 51-62, January.
    6. Zhu, Xueqin & Milán Demeter, Róbert, 2012. "Technical efficiency and productivity differentials of dairy farms in three EU countries: the role of CAP subsidies," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 13(1), pages 1-27.
    7. repec:dgr:rugggd:gd-124 is not listed on IDEAS
    8. repec:dgr:rugggd:gd-109 is not listed on IDEAS
    9. repec:spo:wpmain:info:hdl:2441/7182 is not listed on IDEAS
    10. Harvey, David R., 2003. "Policy Dependency And Reform: Economic Gains Versus Political Pains," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25865, International Association of Agricultural Economists.
    11. Agarwalla, Astha, 2011. "Agglomeration Economies and Productivity Growth in India," IIMA Working Papers WP2011-01-08, Indian Institute of Management Ahmedabad, Research and Publication Department.
    12. Kyle Colangelo & Ying-Ying Lee, 2019. "Double debiased machine learning nonparametric inference with continuous treatments," CeMMAP working papers CWP72/19, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    13. Molestina Vivar, Luis & Wedow, Michael & Weistroffer, Christian, 2023. "Burned by leverage? Flows and fragility in bond mutual funds," Journal of Empirical Finance, Elsevier, vol. 72(C), pages 354-380.
    14. Ai, Chunrong & Chen, Xiaohong, 2007. "Estimation of possibly misspecified semiparametric conditional moment restriction models with different conditioning variables," Journal of Econometrics, Elsevier, vol. 141(1), pages 5-43, November.
    15. Xiaohong Chen & Andres Santos, 2018. "Overidentification in Regular Models," Econometrica, Econometric Society, vol. 86(5), pages 1771-1817, September.
    16. Jinhyun Lee, 2013. "A Consistent Nonparametric Bootstrap Test of Exogeneity," Discussion Paper Series, School of Economics and Finance 201316, School of Economics and Finance, University of St Andrews.
    17. Roberto Martino & Phu Nguyen-Van, 2014. "Labour market regulation and fiscal parameters: A structural model for European regions," Working Papers of BETA 2014-19, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    18. Yi Zhang & Kosuke Imai, 2023. "Individualized Policy Evaluation and Learning under Clustered Network Interference," Papers 2311.02467, arXiv.org, revised Feb 2024.
    19. Carvalho, José-Raimundo & Magnac, Thierry & Xiong, Qizhou, 2016. "College Choice and the Selection of Mechanisms: A Structural Empirical Analysis," IWH Discussion Papers 3/2016, Halle Institute for Economic Research (IWH).
    20. Li, Qi, 1996. "On the root-N-consistent semiparametric estimation of partially linear models," Economics Letters, Elsevier, vol. 51(3), pages 277-285, June.
    21. Delgado, Michael S. & McCloud, Nadine & Kumbhakar, Subal C., 2014. "A generalized empirical model of corruption, foreign direct investment, and growth," Journal of Macroeconomics, Elsevier, vol. 42(C), pages 298-316.
    22. Anil Kumar, 2018. "Do Restrictions on Home Equity Extraction Contribute to Lower Mortgage Defaults? Evidence from a Policy Discontinuity at the Texas Border," American Economic Journal: Economic Policy, American Economic Association, vol. 10(1), pages 268-297, February.
    23. Nick Zubanov & W.S. Siebert, 2009. "Management economics in a large UK retailer," CPB Discussion Paper 125, CPB Netherlands Bureau for Economic Policy Analysis.
    24. De Loecker, Jan & Konings, Jozef, 2003. "Creative Destruction and Productivity Growth in an Emerging Economy: Evidence from Slovenian Manufacturing," IZA Discussion Papers 971, Institute of Labor Economics (IZA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jns:jbstat:v:227:y:2007:i:3:p:273-294:n:5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.