This article investigates the capitalization of farm subsidies in Italy by relying on a novel approach based on the Grouped Fixed Effect (GFE) estimator. This methodology allows us to account for the regional unobserved time-varying determinants of the Italian land values. Results show that the elasticity of land price with respect to coupled and decoupled subsidies is below one. Particularly, for the latter payments, the degree of capitalization declines with decreasing competition in farmland markets.
The capitalization of CAP payments into land rental prices: a grouped fixed-effects estimator / D. Valenti, D. Bertoni, D. Cavicchioli, A. Olper. - In: APPLIED ECONOMICS LETTERS. - ISSN 1350-4851. - (2020). [Epub ahead of print]
Titolo: | The capitalization of CAP payments into land rental prices: a grouped fixed-effects estimator |
Autori: | VALENTI, DANIELE (Primo) CAVICCHIOLI, DANIELE (Penultimo) OLPER, ALESSANDRO (Ultimo) |
Parole Chiave: | Common Agricultural Policy (CAP); land values; subsidy capitalization; grouped Fixed Effect Estimator (GFE) |
Settore Scientifico Disciplinare: | Settore AGR/01 - Economia ed Estimo Rurale |
Progetto: | Evaluation of CAP 2015-2020 and taking action (CAPTION) |
Data di pubblicazione: | 2020 |
Rivista: | |
Tipologia: | Article (author) |
Data ahead of print / Data di stampa: | apr-2020 |
Digital Object Identifier (DOI): | http://dx.doi.org/10.1080/13504851.2020.1749227 |
Appare nelle tipologie: | 01 - Articolo su periodico |
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2020_Valenti_postprint per AIR.pdf | Articolo principale | Post-print, accepted manuscript ecc. (versione accettata dall'editore) | Embargo: 01/10/2021 Richiedi una copia |