Journal Article

Classical Horizontal Inequities in the Provision of Agricultural Income Support

Paul Allanson

in Applied Economic Perspectives and Policy

Published on behalf of Agricultural and Applied Economics Association

Volume 29, issue 4, pages 656-671
Published in print January 2007 | ISSN: 2040-5790
Published online January 2007 | e-ISSN: 2040-5804 | DOI: http://dx.doi.org/10.1111/j.1467-9353.2007.00379.x
Classical Horizontal Inequities in the Provision of Agricultural Income Support

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  • Welfare Economics
  • Agricultural Economics
  • Taxation, Subsidies, and Revenue

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This article explores the redistributive effects of classical horizontal inequities induced by agricultural policy. Within-farm type horizontal inequity is associated with differences in the level of support received by farms of a given type and level of pre-support income. Between-farm type horizontal inequity arises from systematic differences in support levels between commodity regimes. The overall redistributive effect of such inequities in Scottish agriculture is shown to be substantial, though systematic discrimination between farm types is not the major cause. The imperfect targeting of support revealed by the empirical findings has implications for the design of policy.

Keywords: D630; H230; H250; Q120; Q180

Journal Article.  7344 words.  Illustrated.

Subjects: Welfare Economics ; Agricultural Economics ; Taxation, Subsidies, and Revenue

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