Agricultural and Trade Policy Reform and Inequality: The Distributive Effects of Direct Payments to German Farmers under the EU's New Common Agricultural Policy

The Common Agricultural Policy (CAP) of the European Union has been in a process of reform since the early 1990s. As a result of reforms, agricultural market regulations have become more liberal and direct payments have been introduced which are to a large extent decoupled from production. In this paper, we analyze the effects of the direct payments to farmers on inequality of profits in German agriculture...

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Year of publication:	2007
Authors:	Witzke, Harald von ; Noleppa, Steffen
Institutions:	Universität <Berlin, Humboldt-Universität> / Landwirtschaftlich-Gärtnerische Fakultät
Subject:	Subvention \| Einkommensverteilung \| Agrarpolitik

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1. Introduction
2. Theoretical framework
2.1 The measurement of inequality
2.2 Decomposing inequality
3. Empirical analysis
3.1 Data
3.2 Direct payment and farm size
3.3 The contribution of the inequality of the direct payments to overall profit inequality
3.4 Implications of payments limitations
4. Summary and conclusions
References
Appendix

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