30 Aug 2013

Direct Payments and Land Rents: Evidence from New Member States

Kristine Van Herck / Liesbet Vranken

0
Download Publication

1786 Downloads

This Factor Markets Working Paper analyses the impact of increasing direct payments on land rents in six new EU member states in which agricultural subsidies largely increased as a result of their EU accession. The authors find that up to 25 eurocents per additional euro of direct payments is capitalised in land rents. In addition, the results show that capitalisation of direct payments is higher in more credit constrained markets, while capitalisation of direct payments is lower in countries where more land is used by corporate farms.

Kristine Van Herck is a PhD student at LICOS – Centre for Institutions and Economic Performance, Department of Economics, K. U. Leuven, Belgium and a Research Assistant at the Centre for European Policy Studies (CEPS), Brussels. Jo Swinnen is Senior Research Fellow at the Centre for European Policy Studies (CEPS) and Director of the LICOS Centre for Institutions and Economic Performance at K .U. Leuven. Liesbet Vranken is Assistant Professor at LICOS, K. U. Leuven, and Department of Earth and Environmental Sciences, K. U. Leuven.

Related Publications

Browse through the list of related publications.

The end of an era

The Polish Constitutional Court’s judgment on the primacy of EU law and its effects on mutual trust

Deepening EU-Moldovan Relations

Updating and upgrading in the shadow of Covid-19 Third edition

Deepening EU-Ukrainian Relations

Updating and upgrading in the shadow of Covid-19 Third edition

Deepening EU-Georgian Relations

Updating and upgrading in the shadow of Covid-19 Third edition

Barriers and enablers for implementing circular economy business models

Evidence from the electrical and electronic equipment and agri-food value chains

A tale of two prices

What higher energy costs and the ETS price mean for a just transition