scholarly journals The distributional effects of agricultural policy reforms in Switzerland

2012 ◽  
Vol 58 (No. 11) ◽  
pp. 497-509 ◽  
Author(s):  
N. El Benni ◽  
R. Finger ◽  
S. Mann ◽  
B. Lehmann

This paper analyses the effects of Swiss agricultural policy reforms and the effects of farm income, off-farm income and direct payments on the distribution of the farm household income. To this end, the farm-level income records from the FADN data for the period 1990–2009 are used to calculate Gini coefficients and Gini elasticities. Bootstrap sampling procedures are applied to test for significant differences of the estimated parameters over time. The Gini coefficients estimated in our analysis show that the household income inequality in Swiss agriculture only slightly increased from 0.21 to 0.24, but the farm income inequality strongly increased from 0.27 to 0.38 in the considered period. We find furthermore that increasing off-farm incomes and direct payments would decrease the household income inequality. Especially direct payments that support farmers producing under adverse production conditions in the hill and mountain regions have found to be well targeted and thus contribute to the reductions in income inequality in agriculture.  

2020 ◽  
Vol 17 (4) ◽  
pp. e0112 ◽  
Author(s):  
Štefan Bojnec ◽  
Imre Fertő

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.


2012 ◽  
Vol 13 (2) ◽  
pp. 1-26
Author(s):  
Park Chanyong

The main purpose of this paper is to compare the income inequality and welfare levels between countries selected on a worldwide basis in the 1980s. As analytical tools, Lorenz curves, the Gini coefficients and generalized Lorenz curves are used. Implicit in our analysis is the presumption that welfare is a function of the "size" of total income and distributional equality. This study makes it possible to observe the welfare levels of the selected countries by combining real GDP per capita with income decile. It thus contributes to increasing our understanding of household income inequality and welfare levels in the 1980s. Data for this study is from the "Households Income and Expenditure Statistics, 4th edition" (HIES), one of a series published by the International Labour Organization.


2005 ◽  
Vol 182 ◽  
pp. 356-384 ◽  
Author(s):  
Azizur Rahman Khan ◽  
Carl Riskin

A new, independently designed household income survey for China in 2002 shows some decline in income inequality in both rural and urban China since 1995. However, the overall Gini ratio for China remained unchanged due to a rise in the urban–rural income gap. The reduction in rural inequality stemmed mainly from a fall in both inter-provincial inequality and inequality within most of the provinces, as well as from a further improvement in the distribution of wage income and farm income and a reduction in the regressiveness of net taxes. The reduction in urban inequality came from a fall in inter-provincial inequality and better distribution of imputed rental income and net taxes. The results raise questions about whether recent more equity-oriented policies, such as the “great western development strategy,” began to reduce some dimensions of overall income inequality. For the first time, a special survey was implemented to furnish data on migrants living in towns and cities. Incorporating the migrants into the urban population raises urban inequality and reduces the urban–rural gap somewhat, but leaves the latter still very high by international standards.


2016 ◽  
Vol 3 (1) ◽  
Author(s):  
Pavlos Karanikolas ◽  
Stavros Zografakis

<p>This paper examines the incidence of income<br />inequality and poverty, and the impact of farm<br />income on inequality. A detailed typology of farm<br />households (FHs) is developed, based on Household<br />Budget Survey micro-data. Research findings<br />reveal enormous variations among households<br />with respect to income inequality and poverty.<br />While Marginal- and Pluriactive- FHs do not seem<br />to have an income problem, this is not the case<br />for Farm Households. Poverty is a widespread<br />phenomenon among Retired FHs. Farm income<br />and non-farm income generate a combined stabilization<br />effect, mitigating the overall inequality<br />within households. Policy implications of these<br />findings are discussed in the context of welfare<br />aspects of agricultural policy.</p>


2021 ◽  
Vol 117 (2) ◽  
pp. 1
Author(s):  
Jaka ŽGAJNAR ◽  
Luka JUVANČIČ ◽  
Stane KAVČIČ ◽  
Emil ERJAVEC

Assessment based on representative farms is an established approach in the modern assessment of the effects of changes in agricultural policy. In line with previous CAP reforms, we can expect income redistribution impacts also with the implementation of the legislative and financial framework of the CAP for the next period. This paper discusses a scenario analysis using the farm model. The model is based on linear programming, which enables to address various technological challenges at farm level. We formed the scenarios for the analysis following the example of the scenarios contained in the impact assessment that the European Commission prepared for the CAP after 2020. The analysis involves selected farm types from selected sectors. The results suggest that the expected reduction in the envelope will generally lead to lower farm-level revenues from CAP direct payments. Consequently, economic performance will deteriorate, what is likely to be amplified in some sectors by the abolition of historical payments. The range of consequences at farm level will likely be considerable, especially for sectors and production types with a high share of CAP payments in the structure of total farm income. In certain sectors, however, there is even an improvement regarding the current situation.


2019 ◽  
Vol 7 (1) ◽  
Author(s):  
Simone Severini ◽  
Giuliano Di Tommaso ◽  
Robert Finger

AbstractThis paper provides an ex ante assessment of the effects of the Income Stabilization Tool (IST), a new risk management tool proposed in the Common Agricultural Policy of the European Union. We investigate the effects of IST on income variability and levels as well as on income inequality in the farming population. We take Italian agriculture as an example as the introduction of IST is currently under discussion there. A rich panel of 2777 farms was studied over a period of 7 years. We use stochastic simulation to derive different income inequality estimates and apply Gini decomposition approaches to assess the distributional implications of IST. We compare the current income situation with that resulting from a hypothetical implementation of IST under different policy scenarios, also accounting for reduced levels of CAP direct payments. We find that IST not only stabilizes farm income but also enhances its level and reduces income inequality in Italian agriculture. IST is more effective in reducing income inequality when farmers pay contributions to mutual funds that are proportional to their income compared to the case of flat rate contributions. Finally, results do not support the hypothesis that the impact of IST will differ if the level of direct payments were to be reduced. Thus, results seem robust enough to accommodate future policy conditions.


Author(s):  
Yousef VEISANI ◽  
Ali DELPISHEH ◽  
Reza VALIZADEH ◽  
Sattar KIKHAVANI

Background: Research in source of inequality and enhance of knowledge can be reducing the inequalities in the coming decades. Therefore, we aimed to ascertain effects of income inequality measured by Gini-coefficient to death from suicide in Iran. Methods: This is an ecological study on the relation of Gini-coefficient and suicide death in Iran. Data were obtained from Iranian Urban and Rural Household Income for Gini-coefficient and Expenditure Survey and Iranian Forensic Medicine Organization for suicide. Concentration Index was used to determine of inequality by Gini-coefficient in suicide death and prediction model was applied by Stata software. Significant level considered less than 5%. Results: A Gini-coefficient between 0.2523 and 0.3755 (mean, 0.3092) was observed. The overall concentration index CI was -0.10 (95% CI= -0.19 to -0.01), therefore our results confirmed a positive inequality in incidence suicide rate result from income inequality in Iran. Conclusion: Our results showed a positive inequality due to Gini-coefficients in suicide death. This study could be a start for investigation of inequality source in geographical units and at the individual level in all provinces


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