Effects of redistributing policy support on farmers’ technical efficiency |
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Authors: | Andrea Bonfiglio Roberto Henke Fabio Pierangeli Maria Rosaria Pupo D'Andrea |
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Institution: | CREA – Research Centre for Agricultural Policies and Bioeconomy, Rome, Italy |
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Abstract: | The objective of this article is twofold: first, investigating the relationship between technical efficiency and decoupled direct payments of a sample of Italian farms prior to the application of the 2014–2020 Common Agricultural Policy reform; second, evaluating possible implications of alternative scenarios about distribution of direct payments on technical efficiency. To these aims, a stochastic frontier analysis is adopted. Results indicate that direct payments produce significant effects on technical efficiency in specialized farms, which received higher levels of support. However, effects are contrasting. Moreover, results show that redistribution of policy subsidies may negatively impact on technical efficiency to an extent depending upon the criterion of redistribution applied. Finally, some policy suggestions are given. |
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Keywords: | direct payments internal convergence stochastic frontier analysis technical efficiency C21 C26 C53 D24 Q18 |
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