The effect of subsidies on efficiency of farms in the Liberecký region

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60460709%3A41110%2F15%3A67220" target="_blank" >RIV/60460709:41110/15:67220 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

The effect of subsidies on efficiency of farms in the Liberecký region

Original language description

The aim of the paper is to assess the impact of subsidies on the technical efficiency of agricultural holdings in the Liberecký region. A parametric method ? stochastic frontier analysis ? was used. A true fixed effects model was estimated, assuming a Cobb-Douglas production function with variance of inefficiency explained by explanatory variables. The results reveal that direct payments and agri-environmental payments tend to increase inefficiency, whereas subsidies for Least Favourable Areas have a positive effect on the efficiency of agricultural holdings. The effect of Rural Development Programme subsidies is not statistically significant. Based on our results, we suggest lowering the entitlements (direct payments and agro-environmental measures) as they seem to lower farmers? motivation to engage in efficient production.

Czech name

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Czech description

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Type

J_x - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)

CEP classification

GA - Agricultural economics

OECD FORD branch

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Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2015

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Ekonomická revue

ISSN

1212-3951

e-ISSN

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Volume of the periodical

18

Issue of the periodical within the volume

1

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

10

Pages from-to

15-24

UT code for WoS article

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EID of the result in the Scopus database

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