CAP subsidies and productivity of the EU farms

Rizov, Marian, Pokrivcak, Jan and Ciaian, Pavel (2013) CAP subsidies and productivity of the EU farms. Journal of Agricultural Economics, 64 (3) . pp. 537-557. ISSN 0021-857X (doi:10.1111/1477-9552.12030)

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The paper investigates the impact of the Common Agricultural Policy (CAP) subsidies on farm total factor productivity (TFP) in the European Union (EU). We employ a structural semi-parametric estimation algorithm directly incorporating the effect of subsidies into a model of unobserved productivity. We empirically study the effects using the Farm Accountancy Data Network (FADN) samples for the EU-15 countries. Our main findings are clear: subsidies impact negatively on farm productivity in the period before the decoupling reform was implemented; after decoupling the effect of subsidies on productivity is more nuanced and in several countries it turned positive.

Item Type: Article
Keywords (uncontrolled): CAP subsidies; investment; productivity; micro data; EU farms
Research Areas: A. > Business School > Economics
Item ID: 13104
Notes on copyright: This is the peer reviewed version of the following article: Rizov, M. , Pokrivcak, J. and Ciaian, P. (2013), CAP Subsidies and Productivity of the EU Farms. J Agric Econ, 64: 537-557. doi:10.1111/1477-9552.12030, which has been published in final form at This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
Depositing User: Marian Rizov
Date Deposited: 06 Mar 2014 06:39
Last Modified: 02 Aug 2019 06:55

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