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LAND HETEROGENEITY AND THE EFFECTIVENESS OF CAP SET‐ASIDE
Author(s) -
Rygnestad Hild,
Fraser Rob
Publication year - 1996
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.1996.tb00689.x
Subject(s) - set aside , aside , context (archaeology) , set (abstract data type) , economics , choice set , slippage , microeconomics , econometrics , computer science , financial economics , geography , ecology , art , literature , archaeology , biology , programming language
The May 1992 reform of the CAP included a choice for farmers between set‐aside options. This paper examines the question of whether or not this choice feature has exacerbated the slippage problem associated with the set‐aside policy in the context of heterogeneous land quality. A model is developed which provides a basis for determining both a farmer's preferred choice of set‐aside option, and the implications of this choice for output reduction. A numerical application of the model suggests a strong tendency for farmers to choose the less effective option in terms of reducing output.