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The Distributional Impact of Direct Payments on Irish Farm Incomes
Author(s) -
Keeney Mary
Publication year - 2000
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.1477-9552.2000.tb01227.x
Subject(s) - gini coefficient , economics , economic inequality , income distribution , adjusted gross income , net national income , distribution (mathematics) , ranking (information retrieval) , direct payments , farm income , inequality , comprehensive income , irish , payment , income inequality metrics , household income , gross income , econometrics , demographic economics , public economics , production (economics) , geography , microeconomics , mathematics , finance , state income tax , philosophy , mathematical analysis , linguistics , archaeology , computer science , machine learning , tax reform
The objective of this paper is to analyse the distributional effects of the different income components of Irish farm income with a Gini comparison method and by disaggregating the overall Gini coefficient of income inequality by income source. Using individual farm data for 1992 and 1996, the impact on farm income distribution of the MacSharry CAP reform is assessed. In addition, the change in the Gini coefficient between these years is decomposed into the changes in the within‐source distribution of each income stream and the share of each income stream. The favourable movement in the Gini coefficient is found to be due to the introduction of direct payments, which target less well‐off farmers. Market income remains the single largest influence on deciding the income ranking of a farm while contributing less to total income than before.