On the characterisation and measurement of the redistributive effect of agricultural policy

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    Abstract

    The article proposes a coherent framework for the evaluation of the redistributive performance of agricultural policy. An illustrative study shows that the vertical stance of policy in Scotland was progressive in absolute terms, reflecting the chronic dependence of Scottish agriculture on policy transfers. Nevertheless, the overall redistributive effect of policy was to increase absolute inequality in farm incomes because of horizontal inequities in the incidence of transfers, though neither systematic discrimination between farm types nor systematic reranking was the main cause. The targeting of policy transfers could be improved by the use of indicator variables more strongly correlated with pre-transfer incomes.

    Original languageEnglish
    Pages (from-to)169-187
    Number of pages19
    JournalJournal of Agricultural Economics
    Volume59
    Issue number1
    DOIs
    Publication statusPublished - Feb 2008

    Keywords

    • Agricultural policy
    • income redistribution
    • Scotland
    • HORIZONTAL INEQUITY
    • FARM INCOMES
    • REGRESSION
    • WEALTH
    • STOP

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