Econometric analysis of the effects of subsidies on farm production in case of endogenous input quantities

Arne Henningsen, Subal C. Kumbhakar, Gudbrand Lien

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    Abstract

    The effect of subsidies on farm production has been a major topic in agricultural economics for several decades. We present a new approach for analyzing the effects of different types of coupled and decoupled subsidies on farm production with econometric methods. In contrast to most previous studies, our approach is entirely based on a theoretical microeconomic model, explicitly allows subsidies to have an impact on input use, and takes linkages between the farm and the farm household into account.
    Original languageEnglish
    Publication date2011
    Number of pages10
    Publication statusPublished - 2011
    EventCongress of the European Association of Agricultural Economists 2011 - Zürich, Switzerland
    Duration: 30 Aug 20112 Sept 2011

    Conference

    ConferenceCongress of the European Association of Agricultural Economists 2011
    Country/TerritorySwitzerland
    CityZürich
    Period30/08/201102/09/2011

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