A Mixed Geographically Weighted Approach to Decoupling and Rural Development in the EU-15

The CAP reform and the recent EC communication aimed at preparing its Health Check emphasise the need for interventions locally based where agricultural policy integrates with a broader policy for rural areas growth. In this context, the paper investigates the possible different sets policy indicators affecting agricultural productivity at the regional level considering spatial heterogeneity by means of a Mixed Geographically Weighted Regression approach. The analysis is based on a set of policy sensitive indicators selected according to the key component of the CAP reform and referred to a sample of 164 EU-15 regions at NUTS2 level. The methodology adopted, new for the empirical literature on the topic, allows for a more accurate understanding of spatial relationship of the agricultural and socio-economic factors affecting agricultural productivity at the local level providing useful information for policy making.