Agricultural Policies and Structural Change in French Dairy Farms: A Nonstationary Markov Model |
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| Authors: | Nejla Ben Arfa Karine Daniel Florence Jacquet Kostas Karantininis |
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| Institution: | 1. +33 (0)2 41 23 55 55+33 (0)2 41 23 55 13;2. Groupe ESALaboratoire de Recherche et d'Etudes en Sciences Sociales (LARESS), 55, rue Rabelais‐ B.P. 30748‐ 49007 ANGERS CEDEX 01‐France;3. Groupe ESALARESS–INRA SAE2 LERECO UR 1134 Nantes, France;4. 55, rue Rabelais‐B.P. 30748‐49007 ANGERS CEDEX 01‐France;5. +33 (0)4 99 61 23 25+33 (0)4 67 63 54 09;6. SupAgro INRA, UMR Moisa, 2 place Pierre Viala, 34 060 Montpellier Cedex 2, France;7. +46 (0)18‐671710;8. mobile: +46 (0) 737695591;9. Department of EconomicsSwedish University of Agricultural Sciences (SLU), Inst f?r ekonomi, Box 7013, Johan Brauners v 3, 750 07 UPPSALA |
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| Abstract: | The aim of this paper is to gain an understanding into how agricultural policies have affected structural change in the French dairy sector. A nonstationary Markov model is estimated using a Generalized Cross Entropy approach. Results show that while the price of cow's milk encourages farm growth, direct payments and quota restriction favor small farms. The price signal is a key factor of structural change. As a result, higher milk prices may accelerate the trend toward the further growth of dairy farms. Settlement policy and technical change seem not to slow this trend. |
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