Payment decoupling and intra-European calf trade

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu However, member states were given substantial discretion over the degree and timing of the reform implementation. As a result, different implementation schemes coexist within the EU, keeping certain parts of the income support coupled to current production levels. This coexistence leads to distortions of production incentives, factor misallocations, and artificial trade flows. Here, we examine these effects in the beef sector where full decoupling was not obligatory for all member states. Based on a cost minimization framework, we derive a sector-specific trade model with heterogeneous firms and quality differences. The model is used to examine the effects of different implementation schemes on intra-European calf trade. Empirical results confirm that the expected distortions to trade flows occured, violating the fundamental CAP principle of Market Unity. Terms of use: Documents in

Price transmission along the Greek food supply chain in a dynamic panel framework: empirical evidence from the implementation of decoupling

“…On the other hand, Ihle et al (2012) showed that decoupling reduced the prices of calves while EU spatial price relationships were impacted by the heterogeneity in the implementation of the policy. A similar study by Prehn et al (2015) shows that the heterogeneity in the implementation of the decoupling led to artificial trading that infringed the concept of the single market of agricultural products. However, decoupling was not fully implemented until 2007, thus the majority of the empirical work so far is based on relatively few observations for studying its implications.…”

Analyzing the Impact of Subsidies on Beef Production Efficiency in Selected European Union Countries. A Stochastic Metafrontier Approach

“…These findings have important implications in practice. For example, disparities in the impact of different payment implementations on efficiency across countries post‐MTR could have induced distortions in the intra‐EU trade of agricultural goods (Renwick et al 2011; Prehn, Brümmer, and Thompson 2015). Moreover, the design of income support post‐2013 allowed the continued maintenance of voluntary coupled support for specific farming sectors.…”