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Evaluating the CAP Reform as a multiple treatment effect: evidence from Italian farms

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  • Esposti, Roberto

Abstract

This paper aims at evaluating the impact of the 2003 CAP reform on farm production choices. The 2003 Reform of the Pillar I and the Pillar II measures are considered as two distinct but interacting treatments eventually generating the expected outcome, that is, market (ri)orientation of farmers. The outcome of “market orientation” is measured by considering both the short-term production choices and the long-term investment decisions. The Average Treatment effect on the Treated (ATT) is estimated through alternative versions of the Propensity Score Matching (PSM) estimator. Results show that the 2003 Reform of Pillar I actually had a role in (ri)orienting short-term farm production decision and this effect is significantly reinforced, especially in investment decisions, when Pillar II measures are also taken into account. Pillar I reform seems to prevalently affect short-run production decisions while Pillar II support, when present, influences long-run choices (investments).

Suggested Citation

  • Esposti, Roberto, 2011. "Evaluating the CAP Reform as a multiple treatment effect: evidence from Italian farms," 122nd Seminar, February 17-18, 2011, Ancona, Italy 100216, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa122:100216
    DOI: 10.22004/ag.econ.100216
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    File URL: https://ageconsearch.umn.edu/record/100216/files/Esposti_rev.pdf
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    References listed on IDEAS

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    1. Markus Frölich, 2004. "Programme Evaluation with Multiple Treatments," Journal of Economic Surveys, Wiley Blackwell, vol. 18(2), pages 181-224, April.
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    Cited by:

    1. Olper, Alessandro & Raimondi, Valentina & Cavicchioli, Daniele & Vigani, Mauro, 2011. "Does Common Agricultural Policy Reduce Farm Labour Migration? A Panel Data Analysis Across EU Regions," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114597, European Association of Agricultural Economists.
    2. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair, 2013. "The Impact of CAP Payments on the Exodus of Labour from Agriculture in Selected EU Member States," Factor Markets Working Papers 180, Centre for European Policy Studies.
    3. Olper, Alessandro & Raimondi, Valentina & Cavicchioli, Daniele & Vigani, Mauro, "undated". "Reallocation of Agricultural Labor and Farm Subsidies: Evidence From the EU Regions," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126645, International Association of Agricultural Economists.
    4. Marianne Lefebvre & Kim De Cuyper & Ellen Loix & Davide Viaggi & Sergio Gomez y Paloma, 2014. "European Farmers intentions to invest in 2014-2020: survey results," JRC Research Reports JRC90441, Joint Research Centre.
    5. Lefebvre, Marianne & Gomez y Paloma, Sergio & Viaggi, Davide, 2014. "EU farmers' intentions to invest in 2014-2020: complementarity between asset classes," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182737, European Association of Agricultural Economists.
    6. Esposti, Roberto, 2015. "To match, not to matchm how to match: Estimating the farm-level impact of the 2005 CAP-first pillar reform," 2015 Conference, August 9-14, 2015, Milan, Italy 211625, International Association of Agricultural Economists.

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    Agricultural and Food Policy;

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