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Classical Horizontal Inequities in the Provision of Agricultural Income Support

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  • Paul Allanson

Abstract

This article explores the redistributive effects of classical horizontal inequities induced by agricultural policy. Within-farm type horizontal inequity is associated with differences in the level of support received by farms of a given type and level of pre-support income. Between-farm type horizontal inequity arises from systematic differences in support levels between commodity regimes. The overall redistributive effect of such inequities in Scottish agriculture is shown to be substantial, though systematic discrimination between farm types is not the major cause. The imperfect targeting of support revealed by the empirical findings has implications for the design of policy. Copyright 2007, Oxford University Press.

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  • 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.
    • Handle: RePEc:oup:revage:v:29:y:2007:i:4:p:656-671
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    File URL: http://hdl.handle.net/10.1111/j.1467-9353.2007.00379.x
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    Cited by:

    1. Sahrbacher, Amanda, 2012. "Impacts of CAP reforms on farm structures and performance disparities: An agent-based approach," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 65, number 65.
    2. Elsholz, Rudiger & Harsche, Johannes, 2011. "Price Changes, Policy Impacts and Instability in Farmers’ Revenues," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114342, European Association of Agricultural Economists.
    3. Franz Sinabell & Erwin Schmid & Markus Hofreither, 2013. "Exploring the distribution of direct payments of the Common Agricultural Policy," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 40(2), pages 325-341, May.
    4. Schmid, Erwin & Sinabell, Franz & Hofreither, Markus F., 2006. "Direct payments of the CAP – distribution across farm holdings in the EU and effects on farm household incomes in Austria," Discussion Papers DP-19-2006, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    5. 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.
    6. Paul Allanson & Benedetto Rocchi, 2008. "A comparative analysis of the redistributive effects of agricultural policy in Tuscany and Scotland," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 86(1), pages 35-56.
    7. Elsholz, Rudiger & Harsche, Johannes, 2008. "Common Agricultural Policy Impacts on Farm Revenues," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44409, European Association of Agricultural Economists.
    8. Schmid, Erwin & Sinabell, Franz & Hofreither, Markus F., 2006. "Distributional effects of CAP instruments on farm household incomes in Austria," 2006 Annual meeting, July 23-26, Long Beach, CA 21467, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Hansen, Heiko & Herrmann, Roland, 2012. "The two dimensions of policy impacts on economic cohesion: Concept and illustration for the CAP," Food Policy, Elsevier, vol. 37(4), pages 483-491.
    10. Paul Allanson, 2005. "The Impact of Farm Income Support on Absolute Inequality," Dundee Discussion Papers in Economics 178, Economic Studies, University of Dundee.
    11. Deppermann, Andre & Grethe, Harald & Offermann, Frank, 2011. "Distributional Effects of the CAP on Western German Farm Incomes and Regional Farm Income Disparity," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114442, European Association of Agricultural Economists.
    12. O'Neill,Stephen & Loughrey, Jason & Hynes, Stephen & O'Donoghue, Cathal & Hanrahan, Kevin, 2017. "The Redistributive Impact of EU Farm Payment Reforms in the UK and Ireland," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261107, European Association of Agricultural Economists.
    13. Elsholz, R., 2010. "Regionale Wohlfahrtseffekte der Gemeinsamen Europäischen Agrarpolitik," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 45, March.
    14. Rudiger Elsholz & Johannes Harsche, 2014. "Determinants of regional disparities in farm income: markets or policy?," Economia agro-alimentare, FrancoAngeli Editore, vol. 16(1), pages 13-36.

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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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