The note makes novel use of a decomposition of the Shorrocks mobility index by income source to identify the impact on farm income mobility of a marginal change in each component of income. An empirical application shows that a revenue-neutral change in the balance of agricultural protection between market-based support and direct payments would not have reduced the variability of relative farm incomes in Scottish agriculture.
- Agricultural policy analysis
- Scottish agriculture
- Shorrocks mobility index
- decomposition by income source
- farm income mobility