CEPS © 2019

Banking fragility rooted in justice failures Evidence from Ukraine
Project Report

CAP Subsidies and the Productivity of EU Farms

by Marian Rizov / Jan Pokrivcak / Pavel Ciaian
26 March 2013

CAP Subsidies and the Productivity of EU Farms

Marian Rizov / Jan Pokrivcak / Pavel Ciaian

This paper investigates the impact of subsidies from the common agricultural policy on the total factor productivity of farms in the EU. We employ a structural, semi-parametric estimation algorithm, directly incorporating the effect of subsidies into a model of unobserved productivity. We empirically study the effects using samples from the Farm Accountancy Data Network for EU-15 countries. Our main findings are clear: subsidies had a negative impact on farm productivity in the period before the decoupling reform was implemented; after decoupling the effect of subsidies on productivity was more nuanced, as in several countries it turned positive.

About the Authors


  • Author
    Marian Rizov
    Marian Rizov
  • Author
    Jan Pokrivcak
    Jan Pokrivcak
  • Author
    Pavel Ciaian
    Pavel Ciaian
CAP Subsidies and the Productivity of EU Farms
Download Publication

2688 Downloads