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The Impact of Farm Income Support on Absolute Inequality

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  • Allanson, Paul

Abstract

This paper focuses on the impact of agricultural support policies on the distribution of farming incomes, using measures to characterise and quantify the redistributive effects that are based on the change in the absolute Gini index. The provision of support to Scottish agriculture is found to have been at best ineffective as a means to reduce the average size of income disparities between farms. Agricultural policy is further shown to have been inefficient as a redistributive tool because of the adverse distributional effect of the re-ranking of farms induced by the provision of support.

Suggested Citation

  • Allanson, Paul, 2005. "The Impact of Farm Income Support on Absolute Inequality," 94th Seminar, April 9-10, 2005, Ashford, UK 24432, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae94:24432
    DOI: 10.22004/ag.econ.24432
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    References listed on IDEAS

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    1. 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.
    2. Ahearn, Mary & Johnson, Jim & Strickland, Roger, 1985. "The Distribution Of Income And Wealth Of Farm Operator Households," 1985 Annual Meeting, August 4-7, Ames, Iowa 278657, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. R. A. Musgrave & Tun Thin, 1948. "Income Tax Progression, 1929-48," Journal of Political Economy, University of Chicago Press, vol. 56(6), pages 498-498.
    4. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
    5. Paul Allanson, 2003. "CAP Reform and the Distribution of Farm Income in Scotland {Revised}," Dundee Discussion Papers in Economics 147, Economic Studies, University of Dundee.
    6. Kolm, Serge-Christophe, 1976. "Unequal inequalities. II," Journal of Economic Theory, Elsevier, vol. 13(1), pages 82-111, August.
    7. Mary Keeney, 2000. "The Distributional Impact of Direct Payments on Irish Farm Incomes," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 252-265, May.
    8. Plotnick, Robert, 1981. "A Measure of Horizontal Inequity," The Review of Economics and Statistics, MIT Press, vol. 63(2), pages 283-288, May.
    9. Kolm, Serge-Christophe, 1976. "Unequal inequalities. I," Journal of Economic Theory, Elsevier, vol. 12(3), pages 416-442, June.
    10. John E. Floyd, 1965. "The Effects of Farm Price Supports on the Returns to Land and Labor in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 73(2), pages 148-148.
    11. Mary Ahearn & Jim Johnson & Roger Strickland, 1985. "The Distribution of Income and Wealth of Farm Operator Households," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(5), pages 1087-1094.
    12. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
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    Cited by:

    1. 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.

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    Agricultural and Food Policy;

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