An Examination of the Relationship Between Subsidies on Production and Technical Efficiency in Agriculture: The Case of Cotton Producers in Greece

Grigorios Emvalomatis, Alfons Oude Lansink, Spiro E. Stefanou

    Research output: Contribution to conferencePaper

    Abstract

    Subsidies on production have long been criticized for protecting producers from competition, and thus removing an incentive for efficient use of the resources. This study undertakes the examination of the impact of partially decoupled subsidies on the technical efficiency scores of cotton producers in Greece. The results indicate that compensatory area payments reduce the efficiency scores of the producers by diverting resources from products for which the subsidy is based on the area planted to the production of cotton, for which the aid is related to the volume of output.
    Original languageEnglish
    Number of pages16
    Publication statusPublished - 2008
    Event107th EAAE Seminar, "Modelling of Agricultural and Rural Development Policies". - Seville, Spain
    Duration: 29 Jan 20081 Feb 2008
    http://www.eurosfaire.prd.fr/7pc/doc/1232438051_modelling_agricultural_policies.pdf

    Seminar

    Seminar107th EAAE Seminar, "Modelling of Agricultural and Rural Development Policies".
    CountrySpain
    CitySeville
    Period29/01/081/02/08
    Internet address

    Keywords

    • panel data
    • stochastic distance function
    • subsidies in agriculture
    • Agricultural Finance
    • Crop Produ

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    Emvalomatis, G., Oude Lansink, A., & Stefanou, S. E. (2008). An Examination of the Relationship Between Subsidies on Production and Technical Efficiency in Agriculture: The Case of Cotton Producers in Greece. Paper presented at 107th EAAE Seminar, "Modelling of Agricultural and Rural Development Policies"., Seville, Spain. http://ideas.repec.org/p/ags/eaa107/6673.html