Abstract
The results indicate that the budgetary cost of a direct payment scheme when information is perfect, i.e. the government knows which farms would set up without subsidy, is substantially less than the subsidy cost of the simulation of the current policy. However, the results show that the presence of an imperfect information increases the costs of a direct payments policy significantly with total costs, in this case, substantially exceeding those for the current policy simulation.
| Original language | English |
|---|---|
| Pages (from-to) | 311-322 |
| Number of pages | 13 |
| Journal | Land Use Policy |
| Volume | 23 |
| Issue number | 3 |
| Early online date | 2 Dec 2004 |
| DOIs | |
| Publication status | Published - Jul 2006 |
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Direct payments versus interest rate subsidies to new farmer : a simulation analysis of alternative farm set-up policies in France. / Benjamin, C.; Le Roux, Y.; Phimister, E.
In: Land Use Policy, Vol. 23, No. 3, 07.2006, p. 311-322.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Direct payments versus interest rate subsidies to new farmer
T2 - a simulation analysis of alternative farm set-up policies in France
AU - Benjamin, C.
AU - Le Roux, Y.
AU - Phimister, E.
N1 - We would like to acknowledge the financial support of INRA. We would also like to pay tribute to our friend and colleague Yves Le Roux who sadly passed away in 2003. Finally, we would like to thank the two anonymous referees for their useful comments on earlier drafts of this paper. All usual caveats apply.
PY - 2006/7
Y1 - 2006/7
N2 - This article considers the effectiveness of the current farm set-up policy in France relative to a direct payments policy. Specifically, using information on French specialist cereal farms from the French Farm Accountancy Data Network, the current policy of interest rate subsidies plus direct payments is simulated and compared with a direct payments scheme in the presence of asymmetric information.The results indicate that the budgetary cost of a direct payment scheme when information is perfect, i.e. the government knows which farms would set up without subsidy, is substantially less than the subsidy cost of the simulation of the current policy. However, the results show that the presence of an imperfect information increases the costs of a direct payments policy significantly with total costs, in this case, substantially exceeding those for the current policy simulation.
AB - This article considers the effectiveness of the current farm set-up policy in France relative to a direct payments policy. Specifically, using information on French specialist cereal farms from the French Farm Accountancy Data Network, the current policy of interest rate subsidies plus direct payments is simulated and compared with a direct payments scheme in the presence of asymmetric information.The results indicate that the budgetary cost of a direct payment scheme when information is perfect, i.e. the government knows which farms would set up without subsidy, is substantially less than the subsidy cost of the simulation of the current policy. However, the results show that the presence of an imperfect information increases the costs of a direct payments policy significantly with total costs, in this case, substantially exceeding those for the current policy simulation.
UR - http://www.scopus.com/inward/record.url?eid=2-s2.0-33646859773&partnerID=MN8TOARS
U2 - 10.1016/j.landusepol.2004.08.001
DO - 10.1016/j.landusepol.2004.08.001
M3 - Article
VL - 23
SP - 311
EP - 322
JO - Land Use Policy
JF - Land Use Policy
SN - 0264-8377
IS - 3
ER -