Does Subsidy Drive Productivity? A Cross-Country Analysis of Nordic Dairy Farms
One of the foremost objectives of the Common Agricultural Policy (CAP) in the European Union (EU) is to increase agricultural productivity. However, little empirical research has been done to examine the effects of subsidy on farm performance and, in particular, the channels through which subsidy af...
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ftciteseerx:oai:CiteSeerX.psu:10.1.1.492.5454 2023-05-15T17:44:38+02:00 Does Subsidy Drive Productivity? A Cross-Country Analysis of Nordic Dairy Farms Nadine Mccloud Subal C. Kumbhakar The Pennsylvania State University CiteSeerX Archives 2007 application/pdf http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.492.5454 http://www.bus.lsu.edu/hill/aie/kumbhakar.pdf en eng http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.492.5454 http://www.bus.lsu.edu/hill/aie/kumbhakar.pdf Metadata may be used without restrictions as long as the oai identifier remains attached to it. http://www.bus.lsu.edu/hill/aie/kumbhakar.pdf Southern Central and Northern Sweden text 2007 ftciteseerx 2016-08-14T00:04:58Z One of the foremost objectives of the Common Agricultural Policy (CAP) in the European Union (EU) is to increase agricultural productivity. However, little empirical research has been done to examine the effects of subsidy on farm performance and, in particular, the channels through which subsidy affects productivity. Using a Bayesian hierarchical model in which input elasticities, efficiency change and tech-nical change depend on subsidy and other factors including farm location, we analyze empirically how subsidy affects the performance of farms. We use an unbalanced panel from the EU’s Farm Accountancy Data Network on Danish, Finnish and Swedish dairy farms and partition the data into 8 regions. The data set covers the period 1997- 2003 and has a total of 6609 observations. The results suggest that subsidy drives productivity through efficiency and input elasticities and the relative importance of these channels differ across regions. In stark contrast to existing studies, we find that subsidy has a positive impact of technical efficiency. The marginal product of subsidy is largest for dairy farms in Denmark Text Northern Sweden Unknown |
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English |
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Southern Central and Northern Sweden |
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Southern Central and Northern Sweden Nadine Mccloud Subal C. Kumbhakar Does Subsidy Drive Productivity? A Cross-Country Analysis of Nordic Dairy Farms |
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Southern Central and Northern Sweden |
description |
One of the foremost objectives of the Common Agricultural Policy (CAP) in the European Union (EU) is to increase agricultural productivity. However, little empirical research has been done to examine the effects of subsidy on farm performance and, in particular, the channels through which subsidy affects productivity. Using a Bayesian hierarchical model in which input elasticities, efficiency change and tech-nical change depend on subsidy and other factors including farm location, we analyze empirically how subsidy affects the performance of farms. We use an unbalanced panel from the EU’s Farm Accountancy Data Network on Danish, Finnish and Swedish dairy farms and partition the data into 8 regions. The data set covers the period 1997- 2003 and has a total of 6609 observations. The results suggest that subsidy drives productivity through efficiency and input elasticities and the relative importance of these channels differ across regions. In stark contrast to existing studies, we find that subsidy has a positive impact of technical efficiency. The marginal product of subsidy is largest for dairy farms in Denmark |
author2 |
The Pennsylvania State University CiteSeerX Archives |
format |
Text |
author |
Nadine Mccloud Subal C. Kumbhakar |
author_facet |
Nadine Mccloud Subal C. Kumbhakar |
author_sort |
Nadine Mccloud |
title |
Does Subsidy Drive Productivity? A Cross-Country Analysis of Nordic Dairy Farms |
title_short |
Does Subsidy Drive Productivity? A Cross-Country Analysis of Nordic Dairy Farms |
title_full |
Does Subsidy Drive Productivity? A Cross-Country Analysis of Nordic Dairy Farms |
title_fullStr |
Does Subsidy Drive Productivity? A Cross-Country Analysis of Nordic Dairy Farms |
title_full_unstemmed |
Does Subsidy Drive Productivity? A Cross-Country Analysis of Nordic Dairy Farms |
title_sort |
does subsidy drive productivity? a cross-country analysis of nordic dairy farms |
publishDate |
2007 |
url |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.492.5454 http://www.bus.lsu.edu/hill/aie/kumbhakar.pdf |
genre |
Northern Sweden |
genre_facet |
Northern Sweden |
op_source |
http://www.bus.lsu.edu/hill/aie/kumbhakar.pdf |
op_relation |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.492.5454 http://www.bus.lsu.edu/hill/aie/kumbhakar.pdf |
op_rights |
Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
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1766146894837317632 |