scholarly journals The impact of the subsidies on efficiency of different sized farms. Case study of the Common Agricultural Policy of the European Union

2020 ◽  
Vol 66 (No. 8) ◽  
pp. 373-380
Author(s):  
Jakub Staniszewski ◽  
Michał Borychowski
Keyword(s):  
Agricultural Policy ◽  
Common Agricultural Policy ◽  
Fixed Effects ◽  
Stochastic Frontier Analysis ◽  
Fixed Effects Model ◽  
Current Form ◽  
Frontier Analysis ◽  
On Farm ◽  
The Impact ◽  
Economic Size

The aim of the study is to determine the impact of the EU Common Agricultural Policy (CAP) subsidies on farm efficiency, depending on farm economic size. Although the impact of subsidies on efficiency is already relatively well recognised, earlier studies were focused on identifying this issue rather than explaining the variation in its intensity. Typically, the analysis of variation by type of production and country was conducted with microeconomic data. Our survey is based on data from the Farm Accountancy Data Network (FADN) aggregated at the regional level, for farms representative for particular economic size classes. In the survey, we apply stochastic frontier analysis and "true" fixed-effects model. The results of the research confirm the hypothesis that the impact of subsidies on efficiency depends on the size of farms. Statistically significant, stimulating effect of subsidies was identified only in the group of the largest farms. Such results put into question the effectiveness of the CAP in stimulating the development of the European Model of Agriculture, and at the same time indicate that in its current form, the policy may interfere with market mechanisms and lead to the phenomenon of "rent seeking".

scholarly journals A Technical Efficiency Analysis of Financial Subsidies Allocated by the Cap in Romanian Farms Using Stochastic Frontier Analysis

2020 ◽  
Vol 12 (4) ◽  
pp. 494-505
Author(s):  
Nicola Galluzzo
Keyword(s):  
Technical Efficiency ◽  
Agricultural Policy ◽  
Rural Areas ◽  
Common Agricultural Policy ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Frontier Analysis ◽  
Decoupled Payments ◽  
The Common ◽  
The Impact

AbstractThe Common Agricultural Policy (CAP) has undergone radical changes as a consequence of international agreements. Through a parametric approach based on Stochastic Frontier Analysis, it has been possible to estimate the impact of financial subsidies allocated under the Common Agricultural Policy for the period from 2007 to 2017 in the framework of the first and second pillars to Romanian farms that are part of the FADN dataset. The findings have revealed the positive effect of financial subsidies allocated to disadvantaged rural areas in increasing technical efficiency, and a modest impact of decoupled payments disbursed under the first pillar of the CAP on the Romanian farms investigated.

scholarly journals “Green” Transformation of the Common Agricultural Policy and Its Impact on Farm Income Disparities

Energies ◽  
2021 ◽  
Vol 14 (24) ◽  
pp. 8242
Author(s):  
Aleksandra Pawłowska ◽  
Renata Grochowska
Keyword(s):  
Agricultural Policy ◽  
Common Agricultural Policy ◽  
Negative Impact ◽  
Development Economic ◽  
Farm Income ◽  
Current Form ◽  
Agricultural Income ◽  
Income Inequalities ◽  
The Common ◽  
The Impact

Taking into account the evolution of the Common Agricultural Policy (CAP), it is wondered to what extent the “green” transformation of this policy and the accompanying change in the distribution of direct payments between farms contributed to the elimination of disproportions in agricultural income. The aim of the study was to investigate the changes in the proclaimed concepts related to the development of the EU agricultural sector in terms of their “green” transformation, and to assess the impact of “green” CAP payments on income inequalities between farms. The research was conducted based on the data representative for Polish commercial farms for the years 2004–2019, covering three financial perspectives of the agricultural policy. The methods of counterfactual modelling and assessment of income inequality were used in the study. The analyses showed that the evolution of the CAP priorities, and hence instruments, towards the pro-environmental (or, more broadly, towards sustainability) have so far had a rather negative impact on the income of Polish farms. In its current form, the support dedicated to environmental and climate protection did not fully compensate farmers for income losses resulting from the use of pro-environmental agricultural practices. Moreover, “green” CAP payments did not play a significant role in shaping income inequalities. Therefore, we can conclude that the CAP instruments do not contribute sufficiently to sustainable development (economic, social, and environmental), because they do not support/motivate farmers to change their production standards.

scholarly journals The impact of EU common agricultural policy decoupling on farm households: Income vs. investment effects

2010 ◽  
Vol 45 (3) ◽  
pp. 188-192 ◽  
Author(s):  
Davide Viaggi ◽  
Meri Raggi ◽  
Vittorio Gallerani ◽  
Sergio Gomez y Paloma
Keyword(s):  
Agricultural Policy ◽  
Common Agricultural Policy ◽  
Farm Households ◽  
On Farm ◽  
The Impact

scholarly journals Farm household income inequality in Slovenia

2020 ◽  
Vol 17 (4) ◽  
pp. e0112 ◽  
Author(s):  
Štefan Bojnec ◽  
Imre Fertő
Keyword(s):  
Income Inequality ◽  
Agricultural Policy ◽  
Common Agricultural Policy ◽  
Household Income ◽  
Farm Income ◽  
Farm Household ◽  
Data Set ◽  
Market Income ◽  
On Farm ◽  
The Impact

Aim of study: To investigate the structure and evolution of farm household income and examine the contribution of different sources of farm household income, particularly the impact of Common Agricultural Policy reform on farm household income inequality in Slovenia.Area of study: Slovenia, one of the European Union member states.Material and methods: A panel data set was compiled using Slovenian Farm Accountancy Data Network data at farm level for the period 2007-2013. Total farm household income was disaggregated into two different components: 1) income components, which can contain market income and off-farm income, and 2) subsidy components, which can contain subsidies from Pillars 1 and 2. Pillar 2 support included subsidies related to agri-environmental measures, less favoured areas and other rural development measures. The income distribution and decomposition were examined using the Gini decomposition method to determine the contribution of each income source and the policy shift from market to government support on farm household income and overall inequality.Main results: A shift in Common Agricultural Policy and related measures determined the structure and evolution of farm household incomes. Off-farm income had a lesser and rather stable impact on farm household income inequality, while the major change involved an increase in the importance of subsidies from Pillar 2 which is consistent with a policy of targeting farms in less favoured areas. Subsidies from Pillar 1 reduced, while market income increased farm household income inequality.Research highlights: Subsidies in farm incomes increased. They could reduce farm household income inequality.

Dampak Kebijakan Moneter Pada Output Di Negara-Negara ASEAN Tahun 1980-2014

2017 ◽  
Vol 4 (1) ◽  
pp. 58-70
Author(s):  
Nur Widiastuti
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Fixed Effects ◽  
Empirical Studies ◽  
Negative Relationship ◽  
Least Square ◽  
Fixed Effects Model ◽  
State Data ◽  
Ordinary Least Square ◽  
The Impact

The Impact of monetary Policy on Ouput is an ambiguous. The results of previous empirical studies indicate that the impact can be a positive or negative relationship. The purpose of this study is to investigate the impact of monetary policy on Output more detail. The variables to estimatate monetery poicy are used state and board interest rate andrate. This research is conducted by Ordinary Least Square or Instrumental Variabel, method for 5 countries ASEAN. The state data are estimated for the period of 1980 – 2014. Based on the results, it can be concluded that the impact of monetary policy on Output shown are varied.Keyword: Monetary Policy, Output, Panel Data, Fixed Effects Model

scholarly journals Cultural and Creative Cities and Regional Economic Efficiency: Context Conditions as Catalyzers of Cultural Vibrancy and Creative Economy

2021 ◽  
Vol 13 (13) ◽  
pp. 7150
Author(s):  
Silvia Cerisola ◽  
Elisa Panzera
Keyword(s):  
Fixed Effects ◽  
Local Context ◽  
Creative Economy ◽  
Fixed Effects Model ◽  
Creative Cities ◽  
Economic Output ◽  
Innovative Methodology ◽  
Holistic Conception ◽  
Panel Fixed Effects ◽  
The Impact

Following the hype that has been given to culture and creativity as triggers and enhancers of local economic performance in the last 20 years, this work originally contributes to the literature with the objective of assessing the impact of cultural and creative cities (CCCs) on the economic output of their regions. In this sense, the cultural and creative character of cities is considered a strategic strength and opportunity that can spillover, favoring the economic system of the entire regions in which the cities are located. Through an innovative methodology that exploits a regional production function estimated by a panel fixed effects model, the effect of cities’ cultural vibrancy and creative economy on the output of their regions is econometrically explored. The data source is the Cultural and Creative Cities Monitor (CCCM) provided by the JRC, which also allows the investigation of the possible role played by the enabling environment in catalyzing the action of cultural vibrancy and creative economy. The results are thoroughly examined: especially through cultural vibrancy, CCCs strategically support the output of their region. This is particularly the case when local context conditions—such as human capital and education, openness, tolerance and trust, and quality of governance—catalyze their effect. Overall, CCCs contribute to feeding a long-term self-supporting system, interpreted according to a holistic conception that includes economic, social, cultural, and environmental domains.

scholarly journals International R&D Spillovers and Innovation Efficiency

2018 ◽  
Vol 10 (11) ◽  
pp. 3974 ◽  
Author(s):  
Jianping Liu ◽  
Kai Lu ◽  
Shixiong Cheng
Keyword(s):  
Capital Stock ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Sensitivity Analyses ◽  
Frontier Analysis ◽  
Country Level ◽  
Scientific Papers ◽  
Catch Up ◽  
The Right ◽  
The Impact

The objective of this study is to examine the impact of international research and development (R&D) spillovers on innovation efficiency of specific R&D outcomes, employing the country-level panel data for 44 countries in the 1996–2013 period. Fully considering the heterogeneity of different R&D outputs, scientific papers, PCT (Patent Cooperation Treaty) patents, US patents, and domestic patents are observed separately, which enriches the angles of measuring international R&D spillovers. By applying a stochastic frontier analysis to knowledge production function, we find that foreign R&D capital stock positively contributes to the innovation efficiency of scientific papers, but suppresses the productivity of domestic patents, whereas it does not really matter for PCT or US patents. These results are robust to control for a set of institutional factors and also in sensitivity analyses. Hence, dependence on international R&D spillovers seems neither to be the right way for emerging economies to catch up, nor to be a sustainable model for developing countries to fill the technical gap. Local R&D capital stock, instead, keeps an essential contributor to all four R&D outputs, so raising internal R&D expenditure is actually the key to improving innovation level and sustainable development ability.

Intellectual capital: a determinant of firms' operational efficiency

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kanishka Gupta ◽  
T.V. Raman
Keyword(s):  
Intellectual Capital ◽  
Stochastic Frontier Analysis ◽  
Stock Exchange ◽  
Stochastic Frontier ◽  
Value Added ◽  
Financial Sector ◽  
Operational Efficiency ◽  
Content Type ◽  
Frontier Analysis ◽  
The Impact

PurposeIntellectual capital (IC) has been recognized in improving the efficiency of businesses and gaining competitive edge in the developed world. The present study offers perspectives into the effect of IC on the efficiency of the Indian financial sector companies.Design/methodology/approachFor the purpose of evaluating efficiency, the research has used stochastic frontier analysis (SFA). All Indian financial sector companies listed in National Stock Exchange (NSE-500) for the timeframe of ten years (2008–2018) have been considered. The paper has employed modified Pulic's Value Added Intellectual Coefficient (VAICTM) as a proxy to measure IC. Correlation and panel data regression have been used in order to examine the relationship.FindingsThe results of the study indicate positive and significant relationship between IC and efficiency of the firm. The results also show that all the components of IC, that is, human capital, relational capital, process capital and capital employed have a significant impact on firms' efficiency. Additionally, it has been seen that sample companies do not invest in research and development leading to no innovation capital.Practical implicationsThe research will assist managers in managing and controlling the IC, investors in matters related to investment and financial experts in improving the company's IC and value creation.Originality/valueThe current research is one of the pioneering studies in the context of Indian financial sector that examines the impact of modified VAIC on operational efficiency calculated using SFA.

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