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Direct payments and competitiveness. Assessing redistributive effects of internal convergence in Italy

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  • Bonfiglio, Andrea
  • Henke, Roberto
  • Pierangeli, Fabio
  • D’Andrea, Maria Rosaria Pupo

Abstract

The objective of the paper is twofold. Firstly, investigating the relationship between competitiveness, measured by technical efficiency, and direct payments of a sample of Italian farms prior to the application of the 2014-2020 CAP reform. Secondly, evaluating possible implications of alternative scenarios about distribution of direct payments on technical efficiency. To these aims, a data envelopment analysis approach in conjunction with a double bootstrapped left-truncated regression model are adopted. Results indicate that direct payments are negatively associated with technical efficiency. Moreover, they show that redistribution of policy subsidies especially towards more inefficient farms provokes a decrease in overall technical efficiency.

Suggested Citation

  • Bonfiglio, Andrea & Henke, Roberto & Pierangeli, Fabio & D’Andrea, Maria Rosaria Pupo, 2018. "Direct payments and competitiveness. Assessing redistributive effects of internal convergence in Italy," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 271955, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa162:271955
    DOI: 10.22004/ag.econ.271955
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    References listed on IDEAS

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    Agricultural and Food Policy;

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